US Tariffs Threaten iPhone Production Shift Amid Rising Costs

The Trump administration’s tariffs on China are unlikely to push Apple into manufacturing iPhones in the United States for the first time. The current tariffs of 145% on products made in China may raise production costs, but Apple’s complex supply chain and financial considerations make a domestic shift impractical.

Analysts estimate that an iPhone produced in the US could cost over $3,000, triple its current price tag of $1,000. Wedbush Securities analyst Dan Ives believes it won’t be possible until 2028 to manufacture iPhones domestically due to labor costs and logistical challenges.

Apple has not publicly discussed its response to the tariffs, but a potential price hike is expected if the tariffs hold. The company’s subscription services and other revenue streams provide some wiggle room for price adjustments.

In 2017, Apple CEO Tim Cook expressed doubts about the US labor pool’s ability to meet the demand for iPhone production. Trump had previously tried to pressure Apple into shifting production to the US but was met with resistance.

Source: https://fortune.com/2025/04/10/apple-iphone-production-trump-china-tariffs-manufacturing-costs