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President Donald Trump is again escalating pressure on U.S. trade partners – as well as the tech companies caught in the middle.
In back-to-back social media posts on Thursday morning, the president threatened new tariffs on iPhones made in India and a sweeping 50% levy on goods from the European Union, reigniting tensions around global supply chains, assuming they ever had time to subside.
Trump’s latest threats quickly sent U.S. stock futures tumbling. Markets clawed back some early losses by mid-morning, with the Dow Jones Industrial Average down 360 points, or about 0.9%. The S&P 500 fell 1% and the tech-heavy Nasdaq lost 1.1%. Apple stock was off about 2.7%.
On Truth Social, Trump reiterated his expectation that Apple (AAPL) move iPhone production to the U.S., writing: “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.” The president’s post appears to conflict with the administration’s own recent trade actions, including a temporary tariff reduction on Chinese imports intended to ease inflation pressure. Apple had responded to that shift by accelerating shipments from India and fast-tracking local production. What’s more, even commentators on Trump’s own side of the aisle acknowledge the incoherence and illogic of his assertions that Apple move production to the U.S.
“Trump simply doesn’t understand the numbers of how this works at all,” tweeted National Review contributor Pradheep J. Shanker. “There is no way Apple moves production to the US any time soon.”
Trump’s call to reshore Apple’s manufacturing comes as India’s role in Apple’s supply chain expands. Last year, the company assembled $22 billion worth of iPhones in India and exported $17.5 billion. Major suppliers like Foxconn (HNHPF) and Tata are investing heavily in the country. The vast majority of iPhones are still made in China, but Apple has been seeking to diversify since the Trump-era trade war and pandemic disruptions.
Minutes later, Trump turned his attention to the E.U.
Citing a $250 billion annual trade deficit and what he called “ridiculous Corporate Penalties” and “unjustified lawsuits,” Trump announced a proposed 50% tariff on all E.U. goods, effective June 1, unless the products are built in the United States. “Our discussions with them are going nowhere!” he wrote.
The sharp escalation, targeting both India and the E.U. on the same day, underscores the unpredictability of Trump’s second-term trade policy. Apple, in particular, is facing whiplash: pushed out of China by tariffs, into India by necessity, and now potentially penalized for doing exactly that.
CEO Tim Cook has not responded publicly.
But as production ramps ahead of Apple’s fall iPhone release cycle, the stakes are far from hypothetical.