US equity futures dropped to session lows on Trump’s announcement, with Nasdaq 100 contracts leading the decline. Apple shares sank 4%.
Apple did not immediately respond to a request for comment on Trump’s threat.
The tech giant has become a frequent Trump target in his push to force companies to bring more manufacturing jobs to the US. Trump’s demands pose a stark challenge to the company, whose supply chains for its popular phones have been concentrated in China for years.
Building iPhones from scratch in the US would be extremely difficult even for a cash-rich company like Apple, with a lack of domestic engineering and manufacturing talent making that nearly impossible in the short run.
See also: Trump's 50% tariffs on India take effect, among the highest in the world
Apple manufactures most of its iPhones in China and has no smartphone production in the US. The company has promised to hire more workers in the US and pledged to spend $500 billion domestically over the next four years.
Trump has also complicated Apple’s plans to import most of the iPhones it sells in the US from India by the end of next year, saying he told Tim Cook, its chief executive officer, to stop building plants in India and instead focus on the US.
