US-Made iPhones May Cost $3,500 Amid Trump’s 25% Apple Tariff Threat

Trump Demands Domestic Manufacturing, Warning of Steep Tariffs That Could Drastically Raise Prices

US President Donald Trump has intensified pressure on Apple, demanding that all iPhones sold in the United States be manufactured domestically—or else face a minimum 25% tariff. Trump issued his warning via Truth Social on Friday, stating,

“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or any place else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”

This pronouncement follows Trump’s broader “Liberation Day” tariff initiatives last month, aimed at reviving American manufacturing jobs and factories. However, experts caution that these demands may be unrealistic and carry steep costs for US consumers.

Highlights:

• Trump demands US-made iPhones or a 25% tariff on imports.

• Complex Apple supply chain centered in Asia makes domestic production challenging.

• Experts warn US-made iPhones could cost $3,500, triple current prices.

• Apple’s CEO Tim Cook confirms growing iPhone production in India but flags tariff-related cost increases.

Complex Asian Supply Chain Makes Domestic Assembly a Costly Challenge

Apple’s production network is deeply entrenched in Asia, where a decades-old ecosystem supports manufacturing efficiency. About 90% of iPhones are assembled in China, with key components like chips and displays sourced from Taiwan and South Korea. Recreating this sophisticated supply chain within the US is a massive undertaking.

Dan Ives, global head of technology research at Wedbush Securities, told CNN that attempting full domestic production is a “fictional tale” and warned that the costs would skyrocket:

“You build that (supply chain) in the US with a fab in West Virginia and New Jersey. They’ll be $3,500 iPhones.”

Ives added that Apple would need approximately three years and $30 billion just to relocate 10% of its supply chain stateside, illustrating the scale and expense of such a shift.

Highlights:

• 90% of iPhones currently assembled in China.

• Critical components sourced from Taiwan and South Korea.

• Costly and time-intensive to replicate supply chain in the US.

• Estimated iPhone price could triple to $3,500 with full US manufacturing.

Tariffs and Rising Costs: The Consumer Impact

While Trump has excluded smartphones from the harshest tariffs on China, Apple currently faces a 20% tariff linked to ongoing geopolitical tensions. CEO Tim Cook has indicated that a growing share of iPhones shipped to the US will come from India, a strategic move to diversify manufacturing.

However, Cook also warned that tariffs might add $900 million to Apple’s costs this quarter alone, signaling mounting financial pressure.

Gene Munster of Deepwater Asset Management told CNN that if tariffs surpass 30%, Apple could be compelled to pass on a portion of the increased costs to consumers:

“At some point, they’re going to have to start to share it.”

Highlights:

• Existing 20% tariff on Apple linked to geopolitical tensions.

• India to become a significant iPhone manufacturing hub.

• Potential $900 million tariff-related cost increase this quarter.

• Consumer prices likely to rise if tariffs increase beyond 30%.

Highlights:

• Trump demands all iPhones sold in the US be made domestically or face 25% tariffs.

• Apple’s production is heavily reliant on Asian supply chains, making full US manufacturing costly and time-consuming.

• Experts estimate that domestically made iPhones could cost up to $3,500.

• Apple is expanding production in India but faces tariffs that could increase costs by hundreds of millions.

• Rising tariffs may force Apple to raise iPhone prices for consumers.