Trump threatens 25% tariff on iPhones if Not Manufactured in USA

President Donald Trump has threatened a 25% tariff on Apple iPhones if they are not manufactured in the US, a move that could significantly impact the price of iPhones and potentially extend to Android phones.

This threat stems from Apple’s decision to produce iPhones in India to avoid previous tariffs on Chinese-made goods, a strategy mirrored by Android manufacturers to circumvent similar tariffs.

The implementation of this tariff would likely lead to substantial price increases for both iPhone and Android devices in the US market due to the increased cost of importing smartphones.

While the tariff is explicitly aimed at Apple, the similar production practices of Android manufacturers mean that they are also vulnerable to the same tariff, leaving consumers of both operating systems facing potential price hikes.

White House Confirms 25% Tariffs on Samsung and Other Non-US Smartphone Manufacturers

The White House has confirmed that the previously announced 25% tariffs on iPhones manufactured outside the US will also apply to Samsung and other smartphone manufacturers that produce phones outside of the United States.

This decision aims to encourage domestic manufacturing, but it’s unclear whether this will significantly impact production locations, potentially leading to increased prices for consumers instead.

The tariffs are expected to take effect by the end of next month, and it remains uncertain whether this policy will persist or if the White House will reverse course, as it has done with other economic decisions.

He told reporters later on Friday that the 25% tariff would also apply to Samsung and other smartphone makers such as Google, Nothing and OnePlus. He expects the tariffs to go into effect at the end of June.

Otherwise it wouldn’t be fair” if it did not apply to all imported smartphones, Trump said. “I had a understanding with (Apple CEO) Tim (Cook) that he wouldn’t be doing this. He said he’s going to India to build plants. I said that’s OK to go to India but you’re not going to sell into here without tariffs. – US President Donald Trump

Millions and millions of human beings screwing in little, little screws to make iPhones would come to the United States and be automated, creating jobs for skilled trade workers such as mechanics and electricians. I need to have the robotic arms, right, do it at a scale and a precision that I could bring it here. And the day I see that available, it’s coming here. – Commerce Secretary Howard Lutnick

Sorry Trump. It Ain’t Happening

Just prior to the Friday announcement of President Trump’s tariff threat, Foxconn, a major Apple production partner, confirmed its commitment to the $1.5 billion component manufacturing facility near Chennai, India.

Apple’s multi-year manufacturing shift from China to India may accelerate, given the projected $900 million increase in costs this quarter due to Trump-era tariffs, despite subsequent tariff exemptions.

If Apple did follow Trump’s wishes it would take an estimated 3 to 5 years to get multiple manufacturing plants up and running. The estimated cost of a new, American made iPhone is $3,500. Nobody is buying a $3,500 iPhone.

Apple has previously stated (when the Trump tariffs were initially issued) that Apple would eat a large majority of the rise in costs and not to pass on to the customer. It was reported that Apple was prepared to pass on 7% to 11% of the tariffs to the consumer to try and keep overall MSRP down and help to continue to sell units.

It makes zero sense for Apple to follow Trump’s requirements. If Apple started building manufacturing plants tomorrow, Trump would be out of office before the manufacturing plants would be ready to produce iPhones. By then, it’s possible the new president would change if not completely wipe away the tariffs. Apple would then be stuck with upside down profit margins and an iPhone that costs us the end consumer $3,500.

I think what is going to happen is Apple will defy the Trump, USA manufacturing requests and continue to manufacture and produce iPhones in India. Apple, shareholders and customers will just have to live with a jacked up profit margin and slightly raised prices for the next few years.

MSRP Cost of Popular Smartphones with a 25% Tariff Included

Apple

iPhone 16 (128gb) – $1,036

iPhone 16 Pro Max (256gb) – $1,498

Samsung

S25 (128gb) – $998

S25 Ultra (256gb) – $1,623

Nothing

Phone 3a (12/256gb) – $473

Phone 3 (256gb) – $1,250 (estimated)

OnePlus

OnePlus 13R (256gb) – $748

OnePlus 13 (256gb) – $1,123

Google

Pixel 9a (128gb) – $623

Pixel 9 (128gb) – $998

Pixel 9 Pro & Pro XL (128gb) – $1,250