On May 23, 2025, former President Donald Trump stated he would impose a 25% tariff on all iPhones not manufactured in the United States. Additionally, he announced plans for a sweeping 50% tariff on all imports from the European Union, citing trade inequities and the need to bring production back to American soil.
Posting on Truth Social, Trump said he had previously told Apple CEO Tim Cook that iPhones sold in the U.S. should be built domestically, not overseas. “If that is not the case,” he wrote, “a Tariff of at least 25% must be paid by Apple to the U.S.”
Apple has already started moving some production to India, with plans to manufacture up to 25% of its iPhones there by the end of 2026. Industry experts argue that producing iPhones entirely in the U.S. would significantly raise costs and possibly double the retail price for consumers.
Markets responded quickly to Trump’s declarations. The Dow Jones dropped over 300 points, the Nasdaq fell nearly 250 points, and the S&P 500 declined roughly 1%. Apple’s stock led tech losses with a 4% drop.
The proposed 50% tariff on EU imports drew additional attention. Trump claimed the EU was designed to take advantage of American trade openness and stated it had been “very difficult to deal with.” The European Union had not issued an official response as of the announcement.
Economic analysts and trade experts expressed concern that the measures could lead to retaliation, higher consumer prices, and disrupted global supply chains. They noted that while the tariffs aim to protect American industries, the short-term costs could be felt widely.
