President Trump ramped up his tariff threats on Friday, threatening Apple and its chief executive with a 25% tariff if the company does not start producing iPhones in the United States.
"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 wrote in a post on Truth Social. "If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S."
Minutes later, Trump took to Truth Social again, threatening a 50% tax on all imports from the European Union beginning on June 1 because trade negotiations with the EU were "going nowhere."
The twin threats caused U.S. stocks to tumble in early trading on Wall Street. Apple's share price fell 3% before the markets opened.
Trump vs. the iPhone
Trump has publicly criticized other major U.S. companies, including Walmart, during his tariff push. But his threat against Apple's iPhone production appears to be the first to target a specific consumer product.
Roughly 80% of all iPhones are currently made in China, which is still facing the possibility of steep tariffs due to Trump’s ongoing trade war.
Last month, Reuters reported that Apple planned to shift its iPhone production to India in response to Trump's tariffs on China — a move that angered the president.
"I had a little problem with Tim Cook yesterday," Trump told reporters during his recent trip to the Middle East. "I said to him, 'Tim, you're my friend. I treated you very good. You're coming in with $500 billion.' But now I hear you're building all over India. I don't want you building in India.'"
In February, shortly after Trump took office, Apple announced plans to open a new factory for artificial intelligence servers in Houston as part of a $500 billion investment in the United States. But the tech giant produces very few products in the U.S.; its MacBook Pro is produced in Texas.
According to CNBC, some analysts estimate that moving iPhone production to the U.S. would raise the price of the popular smartphone by at least 25%. The iPhone 16 Pro currently retails for about $1,000.
Cook, like other tech CEOs, has been trying to establish a friendly relationship with Trump. He gave $1 million to Trump’s inauguration fund and attended the president’s inauguration in January.
Trump vs. the EU
The United States and European Union have been negotiating trade deals during Trump’s 90-day pause on reciprocal tariffs.
Trump's trade negotiators have been pressuring the EU to unilaterally cut tariffs on American goods.
Bloomberg News reported Thursday that the 27-nation bloc is readying $108 billion in retaliatory tariffs if talks fail.
In his Truth Social post, Trump said the EU has been "very difficult to deal with."
“Our discussions with them are going nowhere!” the president wrote. “Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States. Thank you for your attention to this matter!”
