Trump's threat came after he asked Cook to stop making the popular phones in India and pivot to U.S. production instead.

Even with a 25% tariff, the numbers still favor India. A $1,000 iPhone made in India would incur a $250 tariff. Add that to the $30 assembly cost, and the total is $280—still far cheaper than U.S. assembly alone.

Apple previously said in February it would spend $500 billion to expand many of its operations in the U.S., including assembling AI servers in Houston.