President Donald Trump said on Friday Apple will have to pay a 25% tariff if phones sold in the country are not made within its borders.
Shares of the iPhone maker fell nearly 3% on the news in premarket trading.
"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," Trump said in a post on Truth Social.
Apple is positioning India as an alternative manufacturing base amid Trump's tariffs on China that have raised supply-chain concerns and fears of higher iPhone prices, Reuters reported last month.