The ultimatum, posted on Truth Social on May 23, 2025, follows Apple’s plan to shift most U.S. iPhone production to India by late 2026. Trump’s push for domestic manufacturing could reshape Apple’s supply chain, potentially driving up costs for consumers. Bloomberg reported the news, which sent Apple shares down 3% in pre-market trading.
Apple’s India Pivot Sparks Backlash
Apple’s strategy to source over 60 million iPhones annually for the U.S. market from India, announced by CEO Tim Cook earlier this month, aims to reduce reliance on Chinese manufacturing. Foxconn, a key supplier, is investing $1.5 billion in Indian facilities, including a display module plant near Chennai, according to Reuters. Trump criticized this move during a state visit to Qatar, stating he had confronted Cook about building “all over India.” The president’s insistence on U.S. production aligns with his broader pro-American manufacturing stance, but it challenges Apple’s cost-efficient global supply chain.
Why Domestic Production Is a Tall Order
Shifting iPhone manufacturing to the U.S. would require massive investments in factories, workforce training, and logistics. Wedbush analysts estimate that producing iPhones domestically could inflate prices to around $3,500 per device—more than double the current iPhone 16 Pro Max’s starting price of $1,199. The transition could take 5–10 years due to the lack of U.S.-based infrastructure for advanced chip and component production. Fabs, or specialized plants producing microchips, are scarce in the U.S., with only a few under construction, per TechCrunch. For tech users, this could mean pricier iPhones without immediate improvements in quality or availability.
What It Means for Consumers
Higher iPhone prices would hit consumers hard, especially as inflation remains a concern. Apple’s reliance on Asian suppliers keeps costs low, enabling competitive pricing for devices like the iPhone 16 family. A 25% tariff, if imposed, could force Apple to pass costs to buyers or absorb losses, denting profitability. The Verge notes that Apple’s ecosystem—spanning iPhones, Macs, and services—thrives on accessibility, and price hikes could push budget-conscious users toward Android alternatives. For enthusiasts, the tariff threat underscores the tension between innovation and economic nationalism.
Can Apple Adapt?
Apple has not publicly responded to Trump’s latest demand, but the company faces a tough choice. Building U.S. factories would require billions and years of planning, disrupting its finely tuned supply chain. Alternatively, absorbing a 25% tariff could squeeze margins, as iPhones remain Apple’s biggest revenue driver. ZDNET reports that Apple is exploring limited U.S. assembly for select components, but full iPhone production remains unfeasible. Trump’s rhetoric may push Apple to negotiate, leveraging its economic clout to seek exemptions or phased compliance.
