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Trump’s 25% iPhone Tariff Threat Raises Eyebrows Amid Rift with Apple CEO Tim Cook

Personal tensions may be driving presidential policy as Apple faces new tariff threat

by Harikrishnan A
May 27, 2025
in Business, Markets, News, Tech, Trending, World
Reading Time: 3 mins read
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President Donald Trump has publicly threatened to impose a 25% tariff on all iPhones not made in the United States. But this time, the threat seems less about trade and more about a perceived personal slight—Apple CEO Tim Cook’s refusal to join Trump on a recent diplomatic tour of the Middle East.

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According to a New York Times report, the tariff warning came shortly after Trump returned from a multi-country visit to the United Arab Emirates, Qatar, and Saudi Arabia, where he was accompanied by a number of high-profile tech executives. Among those who joined the trip were Nvidia CEO Jensen Huang and OpenAI CEO Sam Altman. But one notable absence didn’t go unnoticed: Tim Cook.

A Missed Invite Turns into a Public Dispute

Cook had reportedly been invited to join the presidential delegation but chose not to attend. Though Apple gave no official reason for Cook’s absence, insiders suggest it may have been due to scheduling conflicts or a conscious decision to avoid a politically charged event. Regardless of the reason, it apparently didn’t sit well with Trump.

Throughout the trip, Trump made a series of jabs directed at Cook. In a speech in Riyadh, he praised other tech leaders for their presence, adding a pointed remark: “Tim Cook isn’t here, but you are.” Days later in Qatar, Trump was even more blunt, saying he had “a little problem with Tim Cook” and criticizing Apple’s expanding manufacturing footprint in India.

Shortly afterward, Trump took his frustration online, stating in a social media post:

“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”

The statement left no doubt that Cook’s absence had struck a nerve—and that the tariff threat was directly tied to it.

Apple Already Navigating Tough Terrain

This isn’t the first time Apple has found itself caught in Trump’s trade crosshairs. Earlier this year, the tech giant narrowly avoided a steep 145% tariff on China-manufactured products. As part of a broader effort to diversify its supply chain, Apple has ramped up production in India, hoping to reduce its reliance on Chinese factories.

But now, India is in the spotlight for a different reason. Trump’s latest remarks frame Apple’s overseas production as a liability—at least politically. Though the former president has long advocated for American companies to bring manufacturing jobs back home, the sudden and specific targeting of Apple suggests a personal grudge rather than a broad policy shift.

Many political observers view the tariff threat as retaliatory—a way to penalize Cook for what Trump sees as a snub. If so, it marks a dramatic change in the previously cordial relationship between the two men.

A Once-Strong Relationship Appears to Fray

During Trump’s first term, Tim Cook managed to maintain a delicate but effective working relationship with the White House. He was one of the few Silicon Valley leaders to engage regularly with the administration, often showing up for key meetings and navigating policy landmines with strategic grace.

Cook even donated $1 million to Trump’s 2017 inauguration fund, signaling a willingness to work with the president despite political differences. In return, Trump often praised Cook, calling him a “great executive” and citing their relationship as an example of how business and government could cooperate.

But the recent tension suggests that goodwill may be eroding. Cook’s apparent decision to avoid aligning himself too closely with Trump’s latest international outing could be a sign that Apple is rethinking its approach to political engagement, especially in an increasingly polarized environment.

Will the Tariff Actually Happen?

So far, the 25% tariff remains just a threat. There’s been no official confirmation from the Office of the U.S. Trade Representative or any other regulatory body that such a policy is in motion. Still, the warning has rattled industry leaders and raised concerns within Apple’s ranks.

If implemented, the tariff could have significant repercussions. Apple’s iPhone lineup remains the company’s biggest revenue driver. Shifting all production to the United States is logistically challenging and could significantly drive up costs—likely resulting in higher prices for American consumers.

Tags: #tariffsAppleiPhoneTrump
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Harikrishnan A

Aspiring writer. Enjoys gaming, fried chicken and iced tea, preferably all together.

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