Trump threatens 25% tariff on iPhones as Apple shifts production to India

President Donald Trump is threatening Apple with a 25% tariff if the tech giant doesn’t start producing iPhones in the U.S.

In a post on Truth Social, his social media platform, Trump said he had “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.” he added.

An Apple spokesperson didn’t immediately respond to Fast Company‘s request for comment.

It’s the latest company to be caught up in the administration’s aggressive tariff policies. Walmart, for example, drew the president’s ire after it warned consumers last week that it may have to raise prices due to cost pressures.

For its part, Apple has been working to diversify its production for the more than 60 million iPhones it sells in the U.S. annually. The vast majority of Apple products are made in China, though the company is reportedly working to move production for most of its U.S.-bound iPhones to India.

Still, Trump’s threat spooked investors. Shares of Apple fell more than 2% on the news, as iPhones could become incredibly pricey. Wedbush Securities managing director Dan Ives said in a note to clients that it would take five to 10 years to shift production to the U.S. and phones could end up costing $3,500. New iPhones, without all the bells and whistles, currently go for around $800.

“We believe the concept of Apple producing iPhones in the US is a fairy tale that is not feasible,” Ives wrote.