While the majority of Apple’s flagship phone production currently takes place in China, the company has begun to shift manufacturing operations to India.
President Donald Trump on Friday announced that Apple will be subject to a tariff of 25% or more for iPhones manufactured outside of the United States. In a statement on social media platform Truth Social, Trump emphasized his expectation for Apple to produce iPhones for the US market within the country’s borders, rather than in India or elsewhere.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.,” Trump said on Truth Social.
Apple, under the leadership of Tim Cook, has been considering transferring iPhone production to India in reaction to the tariffs imposed by President Trump on China. This adjustment in their supply chains has become a point of contention for Trump, who recently mentioned it during his visit to the Middle East.
In response to this news, Apple’s shares dropped over 2% in premarket trading. While the majority of Apple’s flagship phone production currently takes place in China, the company has begun to shift manufacturing operations to India due to the country’s advantageous trade relationship with the U.S.
Approximately 90% of Apple’s iPhone production and assembly is located in China, as estimated by Wedbush Securities.
Approximately 90% of Apple’s iPhone production and assembly is located in China, as estimated by Wedbush Securities.
This latest development comes amidst growing pressure from President Trump for Apple and CEO Tim Cook to increase manufacturing operations within the U.S. Politico reported that Trump and Cook recently met at the White House to discuss this issue.
Disclaimer: Moneywealth research provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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