Trump Chokes Apple With Tariff Threats Despite Cook’s Diversification Push

Apple CEO Tim Cook’s years-long effort to reduce the company’s reliance on China has run into a familiar hurdle: Donald Trump.

Nearly all iPads, Macs, Apple Watches, and AirPods are expected to originate from Vietnam for the June quarter.

Apple shares lost more than $100 billion in market cap after Trump threatened to impose a 25% tariff on iPhones not made in the United States. The warning underscores the limitations of Apple’s ongoing manufacturing diversification to India and Vietnam, which accelerated during Trump’s first term.

While China still produces about 85% of iPhones, Apple has ramped up production in India and Vietnam.

In March alone, Indian factories shipped a record $2 billion worth of iPhones to the U.S., anticipating Trump’s new “Liberation Day” tariffs.

“For the June quarter, we expect most iPhones sold in the U.S. to come from India, and nearly all iPads, Macs, Apple Watches, and AirPods to originate from Vietnam,” Cook said.

Still, analysts remain skeptical. Wedbush’s Dan Ives warned that U.S.-based production would push iPhone prices to around $3,500—calling it “a non-starter for Cupertino.”

Nancy Tengler, CEO of Laffer Tengler Investments, called Trump’s demand “silliness,” adding: “It’s ridiculous to think consumers would pay those prices for a U.S.-built iPhone.”