As U.S. leadership intensifies efforts to bring manufacturing jobs back home, a bold new policy push could have major consequences for one of the world’s most iconic products—the iPhone. Former President Donald Trump recently reaffirmed his stance on domestic production, stating he expects Apple to shift iPhone manufacturing to American soil, or face hefty tariffs.
In a message posted on Truth Social, Trump said Apple must manufacture iPhones in the U.S. rather than in countries like India or China. Otherwise, he proposed a 25% tariff on imported Apple devices. While this may align with his larger vision of revitalizing domestic industry, tech analysts caution that the implications for consumers could be severe.
According to Dan Ives, Head of Technology Research at Wedbush Securities, manufacturing iPhones in the United States would cause their price to soar to around $3,500 per unit—over three times their current retail cost. The reason? The enormous expense of replicating Apple’s intricate supply chain infrastructure, most of which is based in Asia.
“Building Apple’s production ecosystem in the U.S.—including chip fabs and assembly plants—would be a multi-year, multibillion-dollar endeavor,” Ives explained. He estimates that shifting even just 10% of Apple’s current supply chain to the U.S. would cost upwards of $30 billion and take at least three years.
Why iPhones Cost Less Now
Apple’s dominance in the smartphone market stems largely from its supply chain efficiency. Around 90% of iPhones are currently manufactured in China, with critical components sourced from Taiwan and South Korea. By centralizing production in Asia, Apple has been able to maintain competitive pricing and high profit margins.
The company’s success has also made it vulnerable. Since the beginning of the Trump-era tariff battles, Apple’s share price has taken hits due to fears over rising costs and disrupted logistics. Analysts suggest that no tech company is more exposed to trade tensions than Apple, which still heavily depends on China for manufacturing.
Apple’s Countermeasures
In recent years, Apple has made efforts to diversify its manufacturing network. India and Brazil have become key secondary production hubs. Apple CEO Tim Cook recently noted that a growing share of iPhones shipped to the U.S. are now assembled in India, helping reduce exposure to Chinese tariffs.
Despite this, the company still faces cost pressures. Apple has already projected that up to $900 million in additional expenses could be incurred this quarter alone due to new tariffs linked to geopolitical tensions.
In response to ongoing trade and tariff uncertainty, Apple has pledged to invest $500 billion in the U.S. over the next four years, signaling a gradual shift toward more domestic operations. However, industry insiders like Gene Munster of Deepwater Asset Management say that tariffs exceeding 30% could still force Apple to raise retail prices.
“Below that threshold, Apple might absorb most of the cost,” said Munster. “But past a certain point, it becomes inevitable that customers will share the burden.”
What’s Next?
With tech regulation and protectionist policies evolving rapidly, Apple—and the broader consumer electronics sector—stands at a crossroads. The push for American-made devices is gaining political momentum, but it could come with a steep price tag for U.S. consumers.
For now, it appears that major tech companies are preparing for all possibilities: balancing political pressures, managing global logistics, and keeping their products affordable.
