Will we ever see “Made in the USA” stamped on the back of an iPhone? Despite the Trump’s administration’s hopes, it’s unlikely that Apple will shift its iPhone production to the United States anytime soon.
The U.S. government has imposed tariffs as high as 145% on products made in the Chinese mainland, aiming to encourage companies like Apple to bring manufacturing jobs back home. However, the reality is more complicated.
Apple has been building a complex supply chain in the Chinese mainland since the 1990s. Moving production would require several years and billions of dollars to establish new plants in the U.S. Moreover, such a move could significantly increase the price of iPhones.
Dan Ives, an analyst at Wedbush Securities, suggests that the cost of an iPhone could soar from its current $1,000 price tag to over $3,000 if production shifted to the U.S. He believes that relocating manufacturing domestically wouldn’t be feasible until at least 2028. “Price points would move so dramatically, it’s hard to comprehend,” he notes.
Apple has not publicly discussed its response to the tariffs. However, the topic may surface when CEO Tim Cook addresses analysts on May 1 during the company’s quarterly earnings call.
Since the increase in tariffs began on April 2, Apple’s stock price has dropped by 15%, wiping out $500 billion from the company’s market value. The trade tensions continue to be a pressing issue for the tech giant and the global economy.
