President Donald Trump has issued a stark warning to Apple Inc., threatening a 25% tariff on iPhones unless they are manufactured in the United States. This announcement, made via social media, intensifies pressure on the tech giant to increase domestic production of its popular devices.

In a post on Truth Social, Trump stated, "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 president's comments come amid ongoing trade tensions and reflect his administration's push for U.S.-based manufacturing. Following Trump's announcement, U.S. equity futures fell sharply, with Apple shares dropping as much as 4% in pre-market trading. The Nasdaq 100 contracts led the decline, signaling investor concern over the potential impact of these tariffs.

Trump's demands pose a significant challenge for Apple, which has relied heavily on Chinese supply chains for years. The company has been exploring options to shift some manufacturing to India, but this has frustrated Trump, who expressed his discontent during a recent trip to the Middle East. "I had a little problem with Tim Cook yesterday," Trump said. "He is building all over India. I don’t want you building in India."

Apple has previously indicated plans to invest $500 billion in the U.S. over the next four years, which includes establishing a new server manufacturing facility in Houston and a supplier academy in Michigan. However, this commitment does not fully align with Trump's vision of a complete shift to U.S.-based production.

The logistics of moving iPhone manufacturing to the U.S. would be monumental. Apple's largest assembly facilities, primarily located in Asia, are vast operations that resemble small towns, complete with schools and medical facilities. The company collaborates closely with suppliers like Foxconn and Pegatron to customize the assembly of new devices, a process that takes months or even years.

Experts have suggested that Apple could use its substantial cash reserves to create a fully automated manufacturing facility in the U.S., but supply chain specialists argue that this is impractical due to fluctuating market demands.

The recent escalation in Trump's rhetoric marks a shift from his earlier term, where he and Cook maintained a more cooperative relationship. Investors are now left to navigate the uncertainty surrounding Trump's trade policies and their potential effects on one of the world's most valuable companies. Randy Hare, director of equity research at Huntington National Bank, noted, "It’s a red flag for me that Trump continues to single out Apple and seems to have something against them. You can’t predict what’s going to happen, and that makes me cautious."

As the situation develops, Apple finds itself at a crossroads, balancing the demands of the U.S. government with its global supply chain strategy.