US President Donald Trump reignited trade tensions on Friday, declaring that Apple will face a 25% tariff on iPhones sold in the United States if they are not manufactured within the country.
“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump wrote on his Truth Social platform.
The warning comes amid Apple’s ongoing efforts to diversify its production base away from China. India has emerged as a key player in that strategy, with Apple currently producing about 15% of its iPhones in the country and aiming to raise this to 25% in the coming years, according to Reuters.
Trump’s latest statement comes after Financial Times recently reported that Apple’s contract manufacturer Foxconn recently confirmed a $1.49 billion investment in its Indian subsidiary, Yuzhan Technologies (India) Pvt Ltd, to build a display module plant in Tamil Nadu. The project, approved by the Tamil Nadu government last October, is coming up in Kancheepuram, about 80 km from Chennai.
Despite Trump’s comments, Apple appears committed to expanding its Indian footprint, in line with the government’s ‘Make in India’ initiative. CEO Tim Cook had earlier confirmed that, due to ongoing uncertainties, the company would produce a majority of iPhones sold in the US in India during the June quarter. However, a recently announced trade deal between Washington and Beijing could impact these plans.
Despite these geopolitical headwinds, Apple’s key supplier Foxconn has reaffirmed its commitment to India. In a recent London Stock Exchange filing, Foxconn disclosed a $1.49 billion investment in its Indian subsidiary, Yuzhan Technologies (India) Pvt Ltd, for a display module plant in Tamil Nadu, a state that already hosts major iPhone assembly operations. The project, approved by the Tamil Nadu government last October, will be located in Kancheepuram, about 80 km from Chennai.
Apple has also been a major beneficiary of India’s Production-Linked Incentive (PLI) scheme. According to The Indian Express, Apple and its contract manufacturers have received over 75% of the nearly $1 billion disbursed by the government from 2022-23 to 2024-25.