President Donald Trump reignited trade tensions by threatening to impose a 25% tariff on Apple on May 23, 2025, if the tech giant does not manufacture iPhones in the United States.
Key points of the tariff threat
Trump said all iPhones sold in the US must be produced domestically, not in India or other countries, or else they will face a 25% tariff.
The proposed tariffs will also apply to other smartphone makers, including Samsung, as part of a broader effort to boost onshore electronics manufacturing.
Trump's move comes after recent efforts by Apple to diversify its supply chain, shifting iPhone production to India amid the ongoing US-China trade tensions.
Market reaction
The announcement sparked a massive sell-off in technology stocks and broader indices, with S&P 500 futures falling 1.5% and the Eurostoxx 600 falling 2%.
Apple's stock price fell sharply, reflecting investor concerns about the company's costs and the potential impact on sales.