Trump’s Tariff Threat Looms Over Apple: 25% on Foreign-Made iPhones, 50% on EU Goods

Washington, D.C., May 23, 2025 — President Donald Trump has intensified his trade war rhetoric, targeting tech giant Apple with a proposed 25% tariff on iPhones not manufactured in the United States. In a fiery post on Truth Social, Trump explicitly dismissed India—where Apple has significantly expanded its production—as an acceptable manufacturing hub, insisting that iPhones sold in the U.S. must be made domestically.

The announcement, which also included a 50% tariff threat on European Union goods starting June 1, 2025, sent shockwaves through financial markets, with Apple’s shares dropping 2.5% in premarket trading on Friday, dragging down major U.S. stock index futures.

Apple’s India Strategy Faces Uncertainty

Apple has been pivoting its supply chain to India as a strategic counter to U.S.-China trade tensions, with recent reports indicating that a substantial portion of iPhones sold in the U.S. during the June 2025 quarter would be produced in Indian facilities. This shift, driven by partnerships with manufacturers like Foxconn and Pegatron, has positioned India as a critical alternative to China, where Apple still produces the majority of its devices.

However, Trump’s latest comments suggest that even this diversification may not shield Apple from his protectionist policies. The president’s statement, “I expect their iPhones… will be manufactured and built in the United States, not India, or anyplace else,” raises questions about the feasibility of rapidly scaling U.S.-based production, given the complex global supply chains tech companies rely on.

Europe in the Crosshairs: 50% Tariff Threat

Trump’s trade offensive extends beyond Apple and Asia. He accused the European Union of exploiting the U.S. through unfair trade practices, citing a $250 billion trade deficit and grievances like VAT taxes and lawsuits against American firms. His proposed 50% tariff on EU goods, set to take effect June 1, 2025, unless production shifts to the U.S., has heightened fears of a broader trade war. This follows recent market analyses projecting that such tariffs could increase consumer prices for electronics by up to 15%, with ripple effects across industries like automotive and luxury goods.

Did You Know?
India’s share of global iPhone production has grown from 1% in 2017 to nearly 14% in 2025, making it a key player in Apple’s supply chain diversification.

Market Jitters and Legal Questions

The financial markets reacted swiftly to Trump’s remarks. Alongside Apple’s stock dip, broader tech indices saw declines, with Nasdaq futures falling 1.2% in early trading. Investors are grappling with uncertainty over whether Trump has the legal authority to impose company-specific tariffs, a question that remains unanswered as Apple has not yet issued a public response. Legal experts suggest that such targeted measures could face challenges under U.S. trade law, potentially requiring congressional approval or broader policy frameworks.

What Lies Ahead for Global Trade?

Trump’s aggressive stance signals a challenging road for U.S. tech firms navigating global supply chains. Apple, which relies on a network of international partners, faces pressure to reconfigure its manufacturing strategy amid political and economic headwinds. With election-year trade rhetoric dominating headlines, the tech industry braces for potential disruptions. Real-time market data indicates growing investor concern, with analysts predicting that sustained tariff threats could elevate iPhone prices by 10-20% if implemented. Meanwhile, India’s role as a manufacturing hub hangs in balance, as does the EU’s trade relationship with the U.S.