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Apple (AAPL) shares fell about 3 percent in early trading Friday after President Donald Trump threatened to impose tariffs of at least 25 percent on iPhones manufactured outside the U.S. The move comes after Apple CEO Tim Cook met with Trump at the White House earlier in the week, according to reports.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s 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 said in a post on Truth Social on Friday. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
Apple has found itself at the center of Trump’s trade war as one of the largest tech companies in the world that operates a global supply chain. Apple manufactures most iPhones in China, but has moved to shift some production to India to avoid recently announced tariffs.
Analysts say building iPhones in the U.S. is essentially impossible in the short term.
“It’s hard to believe that this comes to pass,” Barton Crockett, a senior analyst at Rosenblatt Securities, said on CNBC Friday morning. “To make iPhones at scale in this country is not going to happen in an investable time frame, and certainly not while Trump is president.”
Apple said on a recent earnings call that the majority of iPhones shipped to the U.S. will come from India during the current quarter, while nearly all other products — such as iPads, Macs, Apple Watches and AirPods — will come from Vietnam.
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Trump also lashed out at Apple earlier this month.
“I had a little problem with Tim Cook yesterday. I said to him, ‘Tim, You’re my friend. I treated you very good. You’re coming here with $500 billion, but now here you are building all over India,’” Trump said.
Apple is the worst-performing Mag 7 stock in 2025
Apple shares are down about 20 percent so far in 2025, making it the worst-performing member of the so-called Magnificent Seven stocks. The company faces one of the most direct impacts from the new tariffs and has also struggled to satisfy investor concerns over its artificial intelligence plans.
| Company | 2025 performance (YTD) |
|---|---|
| Alphabet (GOOGL) | -9.7 percent |
| Amazon (AMZN) | -7.4 percent |
| Apple (AAPL) | -19.6 percent |
| Meta Platforms (META) | 8.7 percent |
| Microsoft (MSFT) | 7.9 percent |
| Nvidia (NVDA) | -1.1 percent |
| Tesla (TSLA) | -15.6 percent |
Note: Performance data as of May 22, 2025.
Apple has been highlighting its plan to spend more than $500 billion in the U.S. over the next four years.
“We’re going to be expanding our teams in our facilities in several states, including Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina and Washington, and we’re going to be opening a new factory for advanced server manufacturing in Texas,” Cook said during a recent earnings call.
“We also source glass used in iPhone from an American company. All told, we have more than 9,000 suppliers in the U.S. across all 50 states,” Cook added.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
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