In the wake of President Trump’s sweeping global tariffs, the cost of an iPhone could skyrocket if production were relocated entirely to the United States. While the administration promises a revival of American manufacturing, tech experts warn the reality may be far costlier than anticipated.
Currently retailing around $1,000, the iPhone’s price tag could climb to a staggering $3,500 if it were made and assembled domestically. This estimate accounts for the high costs of replicating the complex manufacturing ecosystem based in Asia. From chip fabrication in Taiwan to screen production in South Korea and final assembly in China, Apple’s supply chain is deeply entrenched overseas. Shifting even a fraction of it to U.S. soil would require billions in investment and years of development.
Despite Apple’s announcement of a $500 billion investment plan to expand U.S. operations, experts remain skeptical that such efforts could fully counteract the financial burden of tariffs. They argue that the intricate web of global suppliers cannot be easily replaced. Even relocating production to lower-tariff nations like India or Brazil poses challenges due to limited infrastructure and capacity.
The result may be unavoidable for consumers: higher prices, even if production remains abroad. Some analysts predict a 30% to 43% increase in iPhone costs as companies pass on the tariff impact. With 90% of iPhones assembled in China, Apple is at the center of a trade storm, forced to navigate rising costs while maintaining its global dominance.
Source: CNN