US President Donald Trump has intensified pressure on Apple to move its iPhone production to the United States, warning of a 25% tariff on domestically sold products if they fail to comply. Trump stated on Truth Social that he expects iPhones sold in the US to be manufactured and built there, not in India or elsewhere, or face the tariff.

This demand follows earlier criticism of Apple CEO Tim Cook for expanding manufacturing operations in India. Despite a reported meeting between Cook and Trump, details of their conversation remain undisclosed, and Apple has yet to comment publicly.

Apple has consistently argued that manufacturing iPhones in the US at scale is not currently feasible due to significant investments in skilled engineers abroad, particularly in China and India. These countries offer the workforce size needed for high-volume production. Apple co-founder Steve Jobs highlighted this challenge in 2010, stating that the US lacked the necessary engineering workforce to support iPhone production. Tim Cook echoed similar sentiments in 2012, expressing a desire for Apple products to be made in the U.S. but acknowledging the difficulties.

Analysts, including Dan Ives from Wedbush Securities, consider reshoring iPhone production an improbable and economically daunting task. Ives estimates that it would likely triple the cost of iPhones, potentially exceeding $3,500 per unit. Additionally, Ives noted that shifting even 10% of Apple's supply chain back to the United States would cost an estimated $30 billion and take at least three years.

In a separate development, President Trump threatened to increase tariffs on goods from the European Union to 50 percent, citing stalled negotiations. He announced that a 50% tariff would be levied on the European Union starting on June 1, 2025.

The US already has a baseline levy of 10 percent, and the new tariffs would significantly escalate economic tensions between the US and the EU. Trump claimed the EU was formed primarily to take advantage of the United States on trade. An EU spokesperson declined to comment, noting a scheduled call between EU Trade Commissioner Maros Sefcovic and US Trade Representative Jamieson Greer.

Dan Ives from Wedbush Securities believes the reshoring of iPhone production to the United States is not feasible. Shifting production to the United States could cause iPhone prices to reach approximately $3,500 and could take up to 10 years to fully shift production.