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Apple’s (AAPL) stock fell roughly 3% in early trading on Friday after President Donald Trump threatened to impose tariffs of at least 25% on iPhones manufactured outside the US.
“I have informed Tim Cook a long time ago that I expect the iPhones for sale in the United States to be manufactured and built in the United States, not India,” Trump said in a post on Truth Social on Friday. “If not, Apple will have to pay at least 25% of the customs duties to the US.”
Apple has found itself at the heart of Trump’s trade war as one of the world’s largest tech companies operating a global supply chain. Apple manufactures most iPhones in China, but to avoid the recently announced tariffs, some production has now moved to India.
Analysts say building a US iPhone is essentially impossible in the short term.
“It’s hard to believe this will work,” Burton Crockett, a senior analyst at Rosenblatt Securities, told CNBC Friday morning. “Making a large iPhone in this country on a scale doesn’t happen in an investable time frame. It certainly isn’t the case while Trump is president.”
In a recent revenue call, Apple said that the majority of iPhones shipped to the US will come from India this quarter, and that almost all other products (iPad, Mac, Apple Watches, Airpods, etc.) will come from Vietnam.
Trump also assaulted Apple earlier this month.
“I had a bit of a problem with Tim Cook yesterday. “Tim, you’re my friend. I treated you very well. You’re here for $500 billion, but now you’re building all over India,” Trump said.
Apple is the worst MAG 7 stock of 2025
Apple’s stock has dropped by around 20% so far in 2025, making it the worst member of the so-called Magnificent seven shares. The company is facing one of the most direct consequences of the new tariffs and is also struggling to meet investors’ concerns about artificial intelligence plans.
| company | 2025 Performance (YTD) |
|---|---|
| Alphabet (googl) | -9.7% |
| Amazon (AMZN) | -7.4% |
| Apple (AAPL) | -19.6% |
| Meta Platform (Meta) | 8.7% |
| Microsoft (MSFT) | 7.9% |
| nvidia (nvda) | -1.1% |
| Tesla (TSLA) | -15.6% |
Note: Performance data as of May 22, 2025.
Apple highlights its plans to spend more than $500 billion in the US over the next four years.
“We plan to expand our teams from several states, including Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina and Washington. We plan to open a new plant in Texas with advanced server manufacturing.”
“We also source glass used in our iPhones from American companies. We all say we have over 9,000 suppliers in the US in all 50 states,” Cook added.
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