US President Donald Trump issued a fresh warning to Apple on Friday, saying the company should face a 25% tariff if it manufactures iPhones in “India or anyplace else.”
Trump asserted that he had already informed Apple CEO Tim Cook that he expects iPhones sold in the US to be made in America.
Apple won’t be alone. In remarks to reporters at the White House on Friday afternoon, Trump said that he would also impose a 25% tariff on Samsung and any other phone manufacturer that makes phones outside of the US, or, he said, “it would not be fair.”
“When they build their plant here, there’s no tariffs. So they’re going to be building plants here,” Trump said.
Could Apple make iPhones in the United States?
Yes. Apple could make iPhones in the United States. But doing so would be expensive and difficult and force the company to more than double iPhone prices to $2,000 or more, said Wayne Lam, an analyst with TechInsights, a market research firm. Apple would have to buy new machines and rely on more automation than it uses in China because the U.S. population is so much smaller, Mr. Lam said.
“It is absurd,” he said. “In the short term, it’s not economically feasible.”
There would be some benefits to moving the supply chain, including reducing the environmental costs of shipping products from abroad, said Matthew Moore, who spent nine years as a manufacturing design manager at Apple. But the upsides would be trivial compared with the challenges that would have to be overcome.
So why hasn’t Apple started production in the United States?
Supply chain experts say shifting iPhone production to the United States in 2025 would be foolish. The iPhone is nearly 20 years old. Apple’s top executives have said people may not need an iPhone in 10 years because it could be replaced by a new device built for artificial intelligence. As a result, Apple would invest a lot of money that it wouldn’t be able to recoup, Mr. Lam said.
“I would be surprised if there’s an iPhone 29,” he said, noting that Apple is trying to disrupt the iPhone by making augmented reality products like the Vision Pro.
What does China offer that the United States doesn’t?
Small hands, a massive, seasonal work force and millions of engineers.
Young Chinese women have small fingers, and that has made them a valuable contributor to iPhone production because they are more nimble at installing screws and other miniature parts in the small device, supply chain experts said. In a recent analysis the company did to explore the feasibility of moving production to the United States, the company determined that it couldn’t find people with those skillsin the United States, said two people familiar with the analysis who spoke on the condition of anonymity.
