US President Donald Trump has once again shaken the global tech and trade sectors with a sharp warning to Apple Inc., declaring that iPhones manufactured in India and sold in the US could face a steep 25% tariff. The statement comes amid India’s ongoing efforts to finalise a major bilateral trade agreement (BTA) with the United States, now hanging in a precarious balance.
Trump’s remarks were made shortly after he signed a set of executive orders aimed at boosting the nuclear power sector in the United States. In a post on his social media platform Truth Social, Trump asserted, “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. If that is not the case, a tariff of at least 25 per cent must be paid by Apple to the US.”
The warning follows recent statements by Apple CEO Tim Cook, who told investors that Apple expects a growing number of iPhones sold in the US to be produced in India. In his second-quarter earnings call, Cook explained that current tariffs are based on the country of origin for Apple products. This strategic shift to Indian manufacturing was largely influenced by earlier tariffs imposed by Trump on Chinese goods, prompting Apple to diversify its supply chain.
Currently, Apple is investing heavily in India, where iPhone production facilities are expanding rapidly. Meanwhile, its iPads, MacBooks, Apple Watches, and AirPods are being shifted to production units in Vietnam for the June quarter. This relocation has helped Apple meet growing US demand while lowering costs and avoiding Chinese-related tariffs.
However, Trump’s renewed insistence on “Made in America” complicates Apple’s global strategy and puts India’s economic ambitions under pressure. If enforced, the 25% tariff could drive up the price of India-made iPhones in the US and weaken Apple’s profitability from its overseas production hubs.
For India, the implications go beyond Apple. New Delhi and Washington are currently negotiating the first phase of a landmark bilateral trade agreement, expected to be sealed by July 8. Talks have been progressing with high-level delegations meeting in Washington over recent weeks.
But the Trump administration’s aggressive trade stance could derail progress. If a deal isn’t reached by July 9, Trump’s 90-day grace period on reciprocal tariffs ends, and Indian goods could face tariffs as high as 26%. This could hit not only electronics but a range of sectors from textiles to pharmaceuticals.
Trump’s move is widely seen as a tactic to pressure both Apple and India — potentially delaying the BTA and asserting US manufacturing dominance. But critics argue that such hardball policies might damage long-term bilateral ties and stifle global tech innovation.
As India aims to become a global electronics manufacturing hub, the coming weeks will be crucial. The world is watching whether diplomacy or disruption will dominate the next phase of US-India trade relations.
