On Friday, President Donald Trump issued a warning regarding tariffs on Apple, specifically targeting iPhones manufactured outside the U.S. His stance seems to be pressuring the tech giant to shift production back to American soil.
Experts indicate that transitioning production of iPhones entirely to the U.S. could take years and would significantly increase costs for consumers. Dan Ives, an analyst from Wedbush Securities, suggested that achieving this could take between five to ten years and might raise the cost to around $3,500.
Ives expressed skepticism, dubbing the notion of an iPhone produced in the U.S. a “fairy tale” that might not be realistic.
In a related note, Trump has proposed a 25% tariff on iPhones if they are not manufactured in the United States. He stated explicitly in a Truth Social post that he had previously informed Apple CEO Tim Cook of his expectation that iPhones sold in the U.S. should be made domestically, rather than sourced from countries like India.
Meanwhile, Apple’s latest models, the iPhone 16 Pro and iPhone 16 Pro Max, are retailing for approximately $1,000 and $1,200. Trump’s announcement follows previous remarks from Cook, who mentioned that more than half of the iPhones planned for the American market were now produced in India to circumvent tariffs on products from China.
It seems that production in India may continue to ramp up, potentially rising from 60% to 65% this fall. Ives pointed out that while Cook has political influences, he primarily operates as a business CEO, suggesting that Apple will likely continue negotiating amidst these complicated tariff challenges.
This latest tariff warning from Trump comes after his recent meeting with Cook at the White House. Earlier in the year, Apple declared a significant investment of $500 billion in the U.S. economy, which includes plans for an AI server manufacturing facility near Houston and an increase in its Advanced Manufacturing Fund.
The company also aims to create an Apple Manufacturing Academy in Detroit, with plans to hire around 20,000 new employees focusing on R&D, silicon engineering, and AI technologies.
