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Apple Faces Potential 25 Percent US Tariff on iPhones

President Trump announced a potential 25% tariff on Apple iPhones if they are not manufactured in the US. Despite Apple's partial supply-chain shifts, full US production is complex and may take years. The tariff threat highlights ongoing trade tensions and uncertainties for Apple’s manufacturing strategy.

Published May 23, 2025 at 12:12 PM EDT in Cloud Infrastructure

Apple, the world's largest technology company, is facing a new challenge amid ongoing trade tensions between the United States and China. President Donald Trump recently declared that Apple must pay a tariff of at least 25% on iPhones sold in the US if the devices are not manufactured domestically.

This announcement came through a post on TruthSocial, where President Trump emphasized his expectation that iPhones sold in the US be manufactured and built within the country, rather than in India or elsewhere. He warned that failure to comply would result in a significant tariff.

This is not the first time President Trump has pressured Apple CEO Tim Cook regarding manufacturing locations. Previously, Trump expressed dissatisfaction with Apple's expansion of production in India, despite Cook's assurances to increase US-based manufacturing.

However, experts caution that shifting full iPhone production to the US is a complex and lengthy process. Certain advanced iPhone models would likely continue to be manufactured primarily in China due to specialized supply chains and expertise.

Earlier this year, the US imposed steep tariffs on Chinese exports but granted temporary exemptions for smartphones and computers. The duration and future of these exemptions remain uncertain, adding to the complexity of Apple's manufacturing decisions.

Apple has not yet publicly responded to the latest tariff threat. The situation underscores the ongoing challenges multinational tech companies face in balancing global supply chains with shifting geopolitical and trade policies.

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