Trump threatens Apple with 25% tariff, EU with 50% tariff

(NewsNation) — President Donald Trump threatened tech giant Apple and the European Union with large tariffs on Friday morning.

Trump suggested a 25% tariff for Apple if iPhone production isn’t moved to the United States and said trade talks with the EU have stalled and that a 50% tariff on all goods from that territory is warranted beginning next week.

“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 wrote on Truth Social Friday morning. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank you for your attention to this matter!”

Speaking to reporters, Trump said he thought he had an understanding with Cook that Apple could make the iPhone in India, but it would have a tariff. But there will be “no tariff if they build their plant here.”

When asked what the EU could do to avoid the steep tariff, Trump said he would have to see.

“They haven’t treated us properly. They haven’t treated our country properly. They banded together to take advantage of us,” he said.

Trump tariffs: Apple to increase manufacturing in India

Most of Apple’s manufacturing occurs in China, around 80% of production capacity, but the company had plans to increase its presence in India in response to Trump’s increased tariffs on Chinese imports, which the president later scaled back.

Around 90% of iPhones are assembled in China, along with 55% of Mac products and 80% of iPads. Currently, India assembles just 10% to 15% of iPhones, with 20% of iPad production and 90% of wearable products like Apple Watches being done in Vietnam.

Experts have said consumers should expect to pay higher prices for iPhones if they’re American-made. Trump also said Friday that the 50% European Union tariffs should start June 1.

Apple would need to spend $30 billion over three years to move just 10% of its supply chain to the U.S., according to Wedbush Securities analyst Dan Ives. He estimated that the price for an iPhone would soar to more than $3,000 if made in the U.S.

“The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” Trump wrote on Truth Social, claiming a $250 million annual trade deficit. “There is no Tariff if the product is built or manufactured in the United States. Thank you for your attention to this matter!”

U.S.-EU trade

Part of Trump’s tariff justification is the idea that the U.S. has been operating at a significant trade deficit with the rest of the world, in part due to policies he has called unfair.

The administration’s focus has largely been on goods and manufacturing while not including services, which make up more of the U.S. economy.

When it comes to the EU, there is a trade imbalance of $236 billion if you look only at goods. If you include services, however, the U.S. deficit drops to $161 billion because the U.S. has a $75.6 billion surplus when it comes to trading services with the EU.

Those include financial services, transport, telecommunication, computer and information services.