Will iPhones remain affordable for American consumers? Donald Trump’s tariff threat of 25% on devices not made in the US sparks major cost concerns, having already wiped $70 billion from Apple’s shares. The former president’s push for domestic manufacturing could significantly impact consumer prices.
Trump explicitly informed Apple CEO Tim Cook of his expectation for US-sold iPhones to be built within the United States, pushing back against the company’s current global production model, which heavily relies on China and is now diversifying into India. This strong stance reiterates Trump’s economic nationalism and his commitment to bringing jobs home.
The tariff warning isn’t confined to Apple; it also encompasses Samsung and any other phone manufacturer producing devices outside of the US. Trump indicated that building plants within the US would exempt companies from these tariffs, thereby creating a powerful incentive for domestic investment. This signals a comprehensive strategy to onshore smartphone manufacturing across the board.
However, experts are expressing doubts about the economic viability and logistical challenges of such a move. They point to the absence of the extensive manufacturing infrastructure and specialized labor force that Apple currently leverages in places like China. The staggering estimate of a US-made iPhone costing $3,500 underscores the potential for significantly higher consumer prices and challenges to market competitiveness.