In a move that could send shockwaves through the tech industry, President Donald Trump has declared that Apple and other smartphone giants like Samsung must manufacture their devices in the United States—or face a steep 25% tariff. The demand, made via Truth Social and reiterated to reporters, marks a renewed push for domestic production in high-tech sectors.
Trump stated clearly that he expects iPhones sold in the U.S. to be “manufactured and built in the United States—not India, or anyplace else.” He warned, “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.” He emphasized the threat would apply not only to Apple but also to “Samsung and anybody that makes that product.”
This isn’t the first time Trump has voiced displeasure over Apple’s global manufacturing strategy. During a recent trip to the Middle East, he publicly criticized Apple CEO Tim Cook for shifting iPhone production to India. Cook had previously noted that most iPhones sold in the U.S. would soon be manufactured in India, marking a shift from the company’s historical dependence on China.
While Apple has been working to diversify its supply chain—partly in response to geopolitical tensions—about 90% of its iPhones are still produced in China. Some manufacturing has moved to India, but Trump’s latest demand raises the stakes. It also follows a recent exemption that spared electronics from broader tariffs on Chinese imports, though a 10% universal tariff still applies to most goods.
Samsung, Apple’s chief rival, could be less vulnerable. The South Korean company stopped making phones in China in 2019 and now relies on factories in Vietnam, India, South Korea, and Brazil.
Echoing the President’s call, Treasury Secretary Scott Bessent stated on Fox News that the goal is to “bring back precision manufacturing to the U.S.” He highlighted the U.S. tech sector’s over-reliance on foreign production—particularly in semiconductors—as a major vulnerability. Apple already manufactures some of its chips in partnership with TSMC in Arizona, but most assembly is still outsourced overseas.
Relocating substantial iPhone production to the U.S. poses serious logistical and financial challenges. Apple has long argued that the U.S. lacks a sufficiently large pool of skilled industrial engineers and that labor costs are significantly higher. Late Apple co-founder Steve Jobs famously told President Obama that the U.S. simply couldn’t supply the 30,000 engineers needed to support a major manufacturing base.
Industry experts agree. Dan Ives, Head of Technology Research at Wedbush Securities, called the idea of U.S.-made iPhones a “fictional tale,” warning that the costs could drive iPhone prices to over $3,500. He estimated that moving even 10% of Apple’s supply chain to the U.S. would cost $30 billion and take three years. A full transition could take five to ten years.
The proposed 25% tariff would likely translate into higher costs for U.S. consumers. Apple is already rumored to be considering price increases for its upcoming iPhone lineup, and additional tariffs would almost certainly exacerbate that trend. Gene Munster of Deepwater Asset Management said Apple would struggle to absorb a 30% tariff without passing some of the cost to customers.
In a possible effort to appease the administration, Apple recently announced a $500 billion investment to expand its U.S. operations. That includes a new server production facility in Houston and expanded data center capacity to support its Apple Intelligence AI services. Whether these investments will satisfy Trump’s demands remains to be seen.
As the debate continues, Apple and Samsung may face mounting pressure to realign their supply chains—bringing the global manufacturing discussion back to the forefront of U.S. economic policy.
