Trump Targets Apple: iPhone Tariffs, India Backlash, and a Billion-Dollar Manufacturing Standoff

President Trump just made Apple (AAPL) the poster child of his new tariff push. He’s not just talking tough about China anymore — he’s aiming at India, Samsung (SMSN), and the entire global tech supply chain.

In a fiery move that shook markets on Friday, Trump warned that Apple would face a 25% tariff on imported iPhones if it didn’t move production to the U.S. “It’s not just Apple,” he said. “It’s Samsung, too. Anybody making smartphones outside America is going to feel it.” That was enough to knock Apple stock down 3% in a single day.

The Presidential Pressure Mounts

Apple had just started moving more of its iPhone production to India, hoping to soften the blow from earlier China-related tariffs. That was a strategic move — until Trump stepped in and said, “Not so fast.” He wasn’t shy about it either. “He’s going to India to build plants,” Trump said, referring to Apple CEO Tim Cook. “That’s fine for India, but you’re not selling those phones here without tariffs.”

The message was loud and clear: if you want to sell in America, you need to build in America. Trump said the tariffs could go into effect as soon as the end of June, though he didn’t offer many specifics.

The problem is that building iPhones in the U.S. is a logistical nightmare. Apple’s entire supply chain—from chips to casings to final assembly—is deeply rooted in Asia. Moving that to America would take years and cost a fortune. Analysts say U.S.-made iPhones could end up costing consumers thousands more. But Trump isn’t having it. “I don’t want the consumer to pay,” he said.

No Good Choices

So now Apple’s stuck. If it eats the tariffs, margins will suffer. If it passes the cost to customers, demand could slump. And rebuilding its manufacturing base in the U.S. isn’t something that happens overnight—or even over a few years.

Sure, Apple is investing at home. It’s planning to spend $500 billion in the U.S. over the next four years, with a new server plant in Houston, a supplier training center in Michigan, and deeper relationships with American manufacturers. But none of that includes iPhone production — and that’s what Trump wants front and center.

_{Apple’s operating expenses have kept climbing, with R&D and admin costs both rising steadily — another pressure point as Trump pushes for costly U.S.-based iPhone production. Source: Main Street Data}

Plenty on Apple’s Plate

And this whole tariff mess isn’t the only thing on Tim Cook’s plate right now. He’s fending off lawsuits from judges who say Apple ignores court orders. Regulators in Europe are demanding major changes to how Apple runs the App Store. Lawmakers are calling for new rules that could shrink Apple’s grip on teen users. Even the billions Apple gets from Google (GOOG) (GOOGL) to be the default search engine in Safari are at risk.

On top of all that, Jony Ive — the man who helped design the iPhone — is now working with OpenAI on a screenless AI device that could one day replace the very phone Apple is fighting to protect.

For years, Apple’s strategy has been to wait, watch, and then strike with a refined product. That’s worked in music, phones, tablets — even wearables. But this time, with Trump breathing down Cook’s neck and rivals racing ahead in AI, patience might not be enough.

Is Apple a Buy, Sell, or Hold?

The Street’s analysts rate Apple as a Moderate Buy, with an average AAPL stock price target of $228.22. This implies a 16.87% upside potential.

See more AAPL analyst ratings