Key Points
- What happened? On May 23, 2025, former President Donald Trump posted on Truth Social that Apple must manufacture all U.S.-bound iPhones domestically or face a 25% tariff. Reuters
- Why it matters: Apple is shifting much of its production to India by 2026 to diversify its supply chain. A sudden move back to U.S. factories could take years and dramatically raise consumer prices. AP News
- Market impact: The Nasdaq and S&P 500 both dipped immediately after Trump’s announcement, with Apple shares falling over 2%.
- Legal and practical hurdles: Experts note there’s no clear legal basis for targeting a single company with tariffs, and the U.S. currently lacks the large-scale manufacturing capacity to build iPhones at volume.
Outlook
Apple has not publicly responded. Investors will watch for any formal executive action or Commerce Department inquiry that might set the tariff in motion—and whether Apple accelerates plans to build U.S. facilities.
