Trump Threatens Apple with 25% Tariff on Overseas iPhones

Donald Trump announced his expectation for Apple to produce iPhones domestically. He warned of a 25% tariff on international manufacturing, a move that renews previous tensions between Apple and U.S. government policies.

The demand affects Apple CEO Tim Cook directly, especially as manufacturing in India increases. Trump’s statement emphasized, “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% must be paid by Apple to the U.S.” The threat follows past negotiations where tariffs on Chinese electronics were reduced, showcasing ongoing expectations for domestic production.

Apple’s stock fell roughly 2% following Trump’s announcement, closing at $195.98. The drop underscores investor discomfort over increased production costs and the broader implications of tariffs on international production locations.

This renewed pressure could add $900 million to Apple’s expenses if tariffs are enforced. Analysts expect technology stocks to witness volatility. The potential effects on cryptocurrencies might include indirect volatility linked to greater market instability.

Trump’s tariff threats mirror past U.S.-China tensions. Previous tariffs on electronics caused declines in tech stocks and sparked a partial shift toward production diversification, with countries like India and Vietnam gaining manufacturing shares.

Experts from Kanalcoin suggest these tensions could cause ripple effects in digital asset markets, potentially affecting cryptocurrency flows if equity markets experience volatility, although direct impacts remain limited.