According to the United States administration, while Apple is free to establish manufacturing operations in India, the company would face a 25 per cent tariff on products sold in the U.S. if it does not shift production domestically.

Initially singling out Apple, Trump warned that iPhones sold in the U.S. must be manufactured within the country or face the steep import duty. He later broadened the warning to include all smartphone manufacturers, indicating that the tariff threat applies industry-wide unless production is based in the U.S.