President Donald Trump recently called for a major shift in Apple’s iPhone manufacturing. Speaking during his “Liberation Day” event and through posts on Truth Social, Trump insisted that all iPhones sold in the United States should also be made domestically. He told Apple CEO Tim Cook that iPhones must not be manufactured in India or other foreign countries. Trump warned that if Apple fails to comply, the company will face a tariff of at least 25%.
Experts warn that moving iPhone production entirely to the U.S. would significantly raise costs. Dan Ives, head of global technology research at Wedbush Securities, explained that recreating Asia’s advanced production system in America is extremely costly. He said building the necessary semiconductor fabrication plants in states like West Virginia or New Jersey would drive iPhone prices up to around $3,500.
Ives also estimated that relocating just 10% of Apple’s supply chain to the U.S. would cost about $30 billion and take three years. Currently, about 90% of iPhones are assembled in China, with chips mostly made in Taiwan and screens from South Korea. This supply chain setup is highly efficient but vulnerable to trade tensions.
Since Trump’s return to office in January, Apple’s stock has fallen more than 14%, largely due to fears over tariffs affecting its global network. Ives said, “No other tech firm is more directly exposed to this tariff pressure than Apple. This is a major shock for the entire sector.”
Apple also faces a 20% tariff on Chinese imports linked to fentanyl trafficking, adding more costs. Tim Cook revealed that Apple is increasing production in India but warned that tariffs could raise expenses by $900 million this quarter alone.
To reduce reliance on China, Apple pledged $500 billion for U.S. investments over four years. This plan includes boosting manufacturing in India and Brazil. Still, analysts like Gene Munster from Deepwater Asset Management say Apple cannot absorb rising tariffs forever. If tariffs exceed 30%, Apple will likely pass costs onto consumers, making iPhones more expensive.