The future of iPhones in the US hangs in the balance: will they be “Made in USA” or face a significant price hike due to Donald Trump’s proposed 25% tariff? This question arises as Trump threatens to levy the tax on phones not manufactured domestically, a move that already wiped $70 billion from Apple’s shares. The former president is forcing a critical decision for tech companies.
Trump directly addressed Apple CEO Tim Cook, articulating his expectation for US-sold iPhones to be produced within the United States, rather than in India or other overseas locations. This comes at a time when Apple is reportedly shifting some production to India to mitigate the effects of past trade disputes with China. Trump’s consistent push for domestic production underscores his unwavering commitment to economic nationalism.
The proposed tariff isn’t solely for Apple; Trump made it clear that Samsung and all other phone manufacturers producing devices outside the US would face the same 25% levy. He emphasized that establishing manufacturing facilities within the US would be the path to tariff exemption, thereby encouraging significant investment in American industries. This broadens the scope of his manufacturing mandate.
Nevertheless, financial analysts and manufacturing experts are raising serious concerns about the feasibility and cost of this proposed shift. They highlight the lack of a comparable manufacturing ecosystem and flexible workforce in the US compared to established hubs in China. The staggering estimate of a US-made iPhone costing $3,500 vividly illustrates the significant economic hurdles and potential consumer impact.