The president floated a 25% tariff on iPhones imported into the U.S. on Friday, adding that Apple (AAPL-0.39%) would foot the bill.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s 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.,” President Trump said in a TruthSocial post on Friday morning.
Shares in Apple were down almost 4% by market open.
The threat followed a report by the Financial Times that Foxconn (HNHPF-1.69%), Apple’s supplier, would spend $1.5 billion on a plant in India for iPhones.
“I had a little problem with Tim Cook yesterday,” Trump said during business roundtable in Qatar last week. I said to him: ‘Tim, you’re my friend. You’re coming here with $500 billion, but now you’re building all over India. I don’t want you building in India.’”
Cook was absent from the president’s Middle East tour, which was attended by Big Tech’s leaders. “I mean, Tim Cook isn’t here but you are,” Trump said to Nvidia (NVDA-1.54%) CEO Jensen Huang at an event in Riyadh, Saudi Arabia.
The spat over Apple’s plans for Indian manufacturing marks a shift in Trump and Cook’s relationship, as the pair have historically been close allies. The president mistakenly called the CEO “Tim Apple” in 2019. That same year, the president told reporters that Cook is a “great executive because he calls me and others don’t.” Cook even donated $1 million of his personal money to Trump’s inauguration.
On top of that, Apple committed to spend more than half a trillion dollars in the U.S over the next four years, with a focus on boosting domestic manufacturing, winning an exemption from April’s “reciprocal” tariffs. That exemption has since been made temporary, however.
The possible 25% tariff comes at a bad time for Apple. It’s is the worst-performing Magnificent Seven stock this year, dropping 22%.
The post Trump’s relationship with Apple is souring appeared first on Quartz.
