UPDATE: When questioned today whether he has the power to tariff only one company, Trump replied that this edict applies to any smartphone maker. "It would be more. It would be also Samsung and anybody that makes that product; otherwise, it wouldn't be fair," he said.Trump says he's setting an end-of-June deadline, but it's unclear if that deadline is for a commitment from these companies to build smartphone factories in the US or actually seeing phones roll off production lines. According to analyst Ming-Chi Kuo, "Moving all iPhone assembly for US models back to the US before Trump’s term ends is unrealistic." "I had an understanding with Tim that he wouldn't be doing this," Trump said of Apple's plan to build iPhones in India versus China. When asked why he thinks Apple can build a phone in the US without raising prices, Trump argued that "a lot of [the production] is computerized now. These plants are amazing, if you look at them," adding, "If they're going to sell it in America, I want it to be built in the United States. They're able to do that."Kuo says, "Apple’s top priority in negotiations with Trump should be finding ways to avoid, delay, or prevent higher iPhone tariffs. For example, Apple could adjust its DEI policies to secure Trump’s temporary commitment to hold off on targeting them.Original Story:President Trump kicked off Memorial Day weekend by threatening to impose a 25% tariff on Apple unless it produces its iPhones in the US. "I have long ago informed Tim Cook of Apple that I expect their iPhone’s [sic] that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else," Trump posted on Truth Social. "If that is not the case, a Tariff of at least 25% must be paid by Apple to the US. Thank [you] for your attention to this matter!"Separately, Trump posted that the European Union "has been very difficult to deal with," and said he is "recommending a straight 50% Tariff on the European Union," starting June 1.'India Can Take Care of Themselves'Apple has long produced most of its iPhones in China via manufacturing partners like Foxconn, though it has taken steps to diversify. Amid the threat of Trump's tariffs, the highest of which were imposed on China, Apple moved much of its US-based iPhone production to India. "For the June quarter, we do expect the majority of iPhones sold in the US will have India as their country of origin," Cook said in an April earnings call. Most iPads, Macs, and Apple Watch devices sold in the US will come from Vietnam. “China would continue to be the country of origin for the vast majority of total product sales outside the US,” Cook added. That didn't sit well with Trump, who said last week that he called Cook to complain about Apple moving production to India. "We put up with all the plants you built in China for years," he told reporters during a recent trip to the Middle East. "We are not interested in you building in India. India can take care of themselves. They are doing very well. We want you to build [in the US]."Apple didn't immediately respond to a request for comment. Recommended by Our EditorsSmartphones are currently exempt from Trump's tariffs, but that could change soon.Is $500 Billion Not Enough?In February, Apple said it would invest more than $500 billion in the US over the next four years. The money will be used to build a server manufacturing facility in Houston, produce silicon chips in Arizona, establish a manufacturing academy in Detroit, and create 20,000 new jobs. But moving iPhone production to the US is probably an unrealistic and expensive goal. Analyst Ming-Chi Kuo suggests that "in terms of profitability, it's way better for Apple to take the hit of a 25% tariff on iPhones sold in the US market than to move iPhone assembly lines back to US." For now, a lot of Apple-based production in the US is being done via partnerships."We're excited about bringing more production to the US," Cook said during that earnings call. "As you know, we've been very key in the TSMC project in Arizona and are the largest and first customer getting product out of that.""During calendar year 2025, we expect to source more than 19 billion chips from a dozen states, including tens of millions of advanced chips being made in Arizona this year," Cook added. "We also source glass used in iPhone from an American company. All told, we have more than 9,000 suppliers in the US across all 50 states."TSMC, however, is warning that tariffs could hamper its expansion plans in Arizona. "Diminished demand could create uncertainty around the timeline for the construction and operation of our Arizona fabs. It could also undermine TSMC’s financial capacity to timely execute its ambitious Arizona project,” the company said in a letter to the US Commerce Department, which sought public comment on the US potentially tariffing foreign-made semiconductors to help encourage domestic chip manufacturing. A year ago, TSMC said it would receive $11.6 billion in US government funding via the 2022 CHIPS and Science Act signed by President Biden, with $6.6 billion of that as grants and the remaining $5 billion as loans.A $2,300 iPhone? Trump's post suggests that iPhones will be subject to tariffs regardless of their country of origin, which could be costly for those looking to upgrade to the iPhone 17 later this year. Rumors already indicate Apple is considering a price increase for its next-gen phones, which it is trying not to tie publicly to tariffs. In April, an analyst from Rosenblatt Securities tells Reuters that tariffs could increase the cost of producing iPhones by up to 43%, putting the high-end iPhone at $2,300 if Apple passes all the extra costs on to consumers.The White House is currently trying to broker individual trade deals with countries around the globe. Thus far, it's announced one with the UK and paused tariffs on China while it negotiates. In the EU, however, Trump says, "Our discussions with them are going nowhere!"Trump claims the US has a trade deficit of more than $250 million with the EU, "which is totally unacceptable," he said. The only way for the EU to avoid US tariffs is to produce its products in the US.