Trump's Tariff Talk Takes a Bite Out of Apple

U.S. President Donald Trump made headlines on Friday by declaring that Apple would face a 25% tariff on any iPhones not manufactured domestically. His pronouncement sent Apple shares tumbling 2.5% in premarket trading, subsequently impacting U.S. stock index futures.

Trump noted that he had previously informed Apple CEO Tim Cook about his expectations for U.S.-manufactured iPhones, urging a shift from foreign production sites like India. He made these remarks public via a post on Truth Social, insisting on a 25% tariff if his demands are not met.

While questions remain about Trump's authority to impose a company-specific tariff, the situation highlights Apple's strategic move to diversify production. Previously, Apple has been positioning India as a key manufacturing base in response to tariffs on China. Reuters had reported that Apple plans to source most U.S.-sold iPhones from India in the upcoming quarter.

(With inputs from agencies.)