On May 23, 2025, former U.S. President Donald Trump announced plans to impose a 25% tariff on Apple if the company continues to sell iPhones manufactured in India to American consumers. Trump made this declaration on his Truth Social platform, emphasizing that iPhones sold in the U.S. should be produced domestically rather than in countries like India In recent years, Apple has been diversifying its manufacturing base, moving a significant portion of iPhone production to India. This strategy aims to mitigate risks associated with U.S.-China trade tensions and to benefit from India's Production-Linked Incentive (PLI) scheme. By March 2025, 97.6% of iPhones exported from India were destined for the U.S. market . Apple's CEO, Tim Cook, confirmed that the majority of iPhones sold in the U.S. during the April-June quarter would be manufactured in India . Analysts warn that imposing a 25% tariff on India-made iPhones could significantly increase costs for Apple. Relocating iPhone production to the U.S. is considered impractical in the short term due to the lack of necessary infrastructure and higher production costs. Estimates suggest that a U.S.-made iPhone could cost around $3,500, compared to the current entry price of $799 . Following Trump's announcement, Apple's stock experienced a decline, falling by 3% to $195.27 . Analysts express concerns that the proposed tariffs could lead to increased prices for consumers or reduced profit margins for Apple. Despite these challenges, some analysts maintain a positive outlook on Apple's stock, with price targets ranging between $240 and $270 .