In a shocking escalation of his trade war tactics, President Donald Trump has threatened Apple with a staggering 25% tariff unless the tech giant relocates its iPhone manufacturing back to the United States. This ultimatum, delivered via Trump’s social media platform, sent ripples through Wall Street, causing Apple’s stock to plummet nearly 3% in pre-market trading. Trump’s threat comes at a precarious moment, as global markets were just emerging from a 90-day truce over tariffs.

The implications of this threat are monumental. Analysts warn that if Apple were to comply, the cost of an iPhone could skyrocket to an eye-watering $3,500—three times its current price. Such an increase would not only cripple Apple’s sales but also leave American consumers reeling from the financial blow. Experts have dismissed the notion of Apple moving production to the U.S. as a “fairy tale,” emphasizing the logistical and economic challenges involved.

Behind the scenes, even White House officials acknowledge the potential fallout. While Trump touts this move as a patriotic duty to revive American manufacturing, the reality is far more complex. The president’s aggressive posturing risks alienating a key player in the U.S. economy, with repercussions that could extend far beyond the tech sector.

Tim Cook, Apple’s CEO, who recently met with Trump, now finds himself caught in a political crossfire. As the pressure mounts, the question remains: will Apple bend to the president’s will, or will this tariff threat backfire spectacularly? With the stakes higher than ever, the unfolding drama between Trump and Apple could redefine the landscape of American manufacturing and consumer prices, leaving millions of Americans watching closely as the situation develops.