President Donald Trump has issued a bold ultimatum to tech giant Apple, demanding that iPhones sold in the United States be manufactured domestically or face a 25% tariff.

In a Truth Social post today, Trump emphasized that Apple’s reliance on production in countries like China and India must shift to the U.S.

The threat comes as Apple’s stock fell over 3% following the announcement, reflecting investor concerns about the potential impact on the company’s supply chain and pricing.

Apple currently assembles 90% of its iPhones in China, with key components sourced from Taiwan, South Korea, and other Asian nations.

Apple has been diversifying its production, with CEO Tim Cook recently stating that most U.S.-bound iPhones will soon be assembled in India. However, this move falls short of Trump’s demand for full U.S. manufacturing.

Trump’s tariff threat may serve as a negotiation tactic, as Apple successfully secured exemptions during his first term.

The company has also pledged $500 billion in U.S. investments, including a new Texas server facility, potentially to ease tensions.