The president said that he expected iPhones from the tech giant to be ’manufactured and built’ in the United States.
President Donald Trump has threatened to impose a 25 percent tariff on Apple if the tech giant does not manufacture iPhones in the United States.
In a May 23 statement posted on social media platform Truth Social, Trump wrote: “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. If that is not the case, a Tariff of at least 25 percent must be paid by Apple to the U.S.”
Shares of Apple fell by 3.5 percent in premarket trading. Apple currently makes more than 90 percent of its products in China.
Apple CEO Tim Cook said on May 1 that most iPhones and other Apple products bound for the U.S. market will no longer be made in China.
The majority of the iPhones heading for the United States in the coming months will instead be made in India, while Vietnam will be the main production point for products such as iPads and Apple Watches.
During a call with investors discussing Apple’s second-quarter results, Cook was asked how the company planned to adapt to the new U.S. tariff regimen, which significantly targets Chinese-manufactured goods.
“For the June quarter, we do expect the majority of iPhones sold in the U.S. will have India as their country of origin and Vietnam to be the country of origin for almost all iPad, Mac, Apple Watch, and AirPods products also sold in the U.S,” Cook said.
Later in the month, speaking in Qatar, Trump admonished Apple and Cook over the tech company’s plans.
“I had a little problem with Tim Cook yesterday,” said Trump. “I said to him: ‘Tim, you’re my friend. You’re coming here with $500 billion, but now I hear you’re building all over India. I don’t want you building in India.”
By Owen Evans
