In a fiery “Liberation Day” speech, U.S. President Donald Trump proclaimed that “jobs and factories will come roaring back,” as sweeping new global tariffs came into effect.
However, industry experts warn that the cost of these measures could fall heavily on American consumers—particularly those purchasing electronics like Apple’s iPhone.
The tariffs, designed to encourage domestic manufacturing and reduce reliance on foreign imports, are already sparking fears of significant price hikes across a range of products. According to Dan Ives, Global Head of Technology Research at Wedbush Securities, an American-made iPhone could cost as much as $3,500—more than three times its current average price of $1,000.
Speaking to CNN’s Erin Burnett, Ives called the idea of shifting iPhone production back to the U.S. a “fictional tale,” noting the immense complexity and cost of recreating Apple’s vast Asian-based supply chain. “You build that in the U.S. with fabs in West Virginia and New Jersey, and you’re looking at $3,500 iPhones,” he said, referencing the high-tech chip fabrication facilities needed to manufacture key components.
Even a partial move of Apple’s supply chain would be a monumental task. Ives estimates it would cost the company $30 billion and take at least three years just to bring 10% of its operations stateside. Apple has yet to comment on the potential shift.
The bulk of iPhone manufacturing currently takes place in China, where roughly 90% of units are assembled. Other components are sourced from countries like Taiwan and South Korea, forming a supply network that has been refined over decades. The relocation of production to Asia was initially driven by lower costs and higher efficiency, allowing American tech firms to focus on software development and design.
But as tensions rise under Trump’s aggressive trade policy, Apple and similar companies may be forced to rethink that strategy. Apple’s share price has already plummeted by about 25% since Trump’s inauguration, largely due to uncertainty surrounding tariffs and supply chain disruptions.
“No company is more exposed in this tariff storm than Apple,” Ives said. “It’s an economic Armageddon—especially for the tech industry.”
Apple had previously announced a $500 billion investment in the U.S. over the next four years in a bid to expand domestic operations and hedge against tariffs. Still, analysts believe rising costs are inevitable, even if production stays in Asia.
A report by Rosenblatt Securities suggested that iPhone prices could increase by 43% if Apple passes the full cost of tariffs onto consumers. Neil Shah, Vice President of Research at Counterpoint, estimated a 30% price rise, depending on the manufacturing location.
To mitigate the impact, Apple has been exploring alternative production sites in countries like India and Brazil. While Brazil faces the lowest tariffs among major iPhone-producing nations (10%), it lacks the manufacturing capacity to fully replace China. India, meanwhile, is subject to 26% tariffs but is increasingly seen as a strategic alternative for assembling iPhones.
As Apple navigates these challenges, one thing is clear: the future price of its flagship product could be dramatically shaped by Trump’s high-stakes tariff war.
