New Delhi: Apple is under pressure after former US President Donald Trump warned that the tech giant could face a 25 per cent tariff if it continues making phones outside the country. The remark led to a 2.5 per cent dip in Apple shares during premarket trading pulling US stock index futures down as well.
In a post on Truth Social, Donald Trump made it clear he wants Apple to make iPhones in the U.S. instead of overseas. “I have long ago informed Tim Cook of Apple that I expect their iPhones 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 said.
Trump has warned that Apple could face a tariff of at least 25 per cent if it doesn’t make iPhones in the U.S. — “If that is not the case, a Tariff of at least 25 per cent must be paid by Apple to the US,” he said. So far, Apple hasn’t responded to the comment.
The company has been steadily moving more of its production to India as it looks to reduce its reliance on China. According to Reuters, most iPhones bound for the U.S. will start coming from India by June. Trump’s warning is in line with his push to bring more manufacturing jobs back to the U.S. However, it’s still unclear whether such a tariff could actually be enforced.