• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

Why Trump’s iPhone tariff threat might not be enough to bring production to the U.S.

by May 25, 2025
written by May 25, 2025

The once-solid relationship between President Donald Trump and Apple CEO Tim Cook is breaking down over the idea of a U.S.-made iPhone.

Last week, Trump said he “had a little problem with Tim Cook,” and on Friday, he threatened to slap a 25% tariff on iPhones in a social media post.

Trump is upset with Apple’s plan to source the majority of iPhones sold in the U.S. from its factory partners in India, instead of China. Cook confirmed this plan earlier this month during earnings discussions.

Trump wants Apple to build iPhones for the U.S. market in the U.S. and has continued to pressure the company and Cook.

“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump posted on Truth Social on Friday.

Analysts said it would probably make more sense for Apple to eat the cost rather than move production stateside.

“In terms of profitability, it’s way better for Apple to take the hit of a 25% tariff on iPhones sold in the US market than to move iPhone assembly lines back to US,” Apple supply chain analyst Ming-Chi Kuo wrote on X.

UBS analyst David Vogt said that the potential 25% tariffs were a “jarring headline” but that they would only be a “modest headwind” to Apple’s earnings, dropping annual earnings by 51 cents per share, versus a prior expectation of 34 cents per share under the current tariff landscape.

Experts have long held that a U.S.-made iPhone is impossible at worst and highly expensive at best.

Analysts have said that iPhones made in the U.S. would be much more expensive, CNBC previously reported, with some estimates ranging between $1,500 and $3,500 to buy one at retail. Labor costs would certainly rise.

But it would also be logistically complicated.

Supply chains and factories take years to build out, including installing equipment and staffing up. Parts that Apple imported to the United States for assembly might be subject to tariffs as well.

Apple started manufacturing iPhones in India in 2017 but it was only in recent years that the region was capable of building Apple’s latest devices.

“We believe the concept of Apple producing iPhones in the US is a fairy tale that is not feasible,” wrote Wedbush analyst Dan Ives in a note on Friday.

Other analysts were wary about predicting how Trump’s threat ultimately plays out. Apple might be able to strike a deal with the administration — despite the eroding relationship — or challenge the tariffs in court.

For now, most of Apple’s most important products are exempt from tariffs after Trump gave phones and computers a tariff waiver — even from China — in April, but Apple doesn’t know how the Trump administration’s tariffs will ultimately play out beyond June.

“We’re skeptical” that the 25% tariff will materialize, wrote Wells Fargo analyst Aaron Rakers.

He wrote that Apple could try to preserve its roughly 41% gross margin on iPhones by raising prices in the U.S. by between $100 and $300 per phone.

It’s unclear how Trump intends to target Apple’s India-made iPhones. Rakers wrote that the administration could put specific tariffs on phone imports from India.

Apple’s operations in India continue to expand.

Foxconn, which assembles iPhones for Apple, is building a new $1.5 billion factory in India that could do some iPhone production, the Financial Times reported Thursday.

Apple declined to comment on Trump’s post.

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
Trump talks with Putin, spars with South African leader, threatens EU tariff hike in 18th week in office
next post
DAVID MARCUS: Jake Tapper chose lying Biden sources over his own eyes

related articles

Essence Fest leads a summer of events for...

July 4, 2025

Tariffs and weaker beer demand are weighing on...

July 3, 2025

Microsoft laying off about 9,000 employees in latest...

July 3, 2025

Apple sues former Vision Pro employee for allegedly...

July 2, 2025

As his feud with Trump reignites, Musk’s business...

July 2, 2025

Lululemon sues Costco over selling alleged dupes

July 1, 2025

Clean energy stocks fall as Trump bill would...

July 1, 2025

Google makes first foray into fusion in venture...

July 1, 2025

Home Depot is buying GMS for about $4.3...

July 1, 2025

Home Depot is buying GMS for about $4.3...

June 30, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Ambitions, hopes, dreams, aspirations, boys playing girls’ sports, and reparations

    October 17, 2024
  • Nigel Farage responds after Elon Musk declares he ‘doesn’t have what it takes’ to lead Reform UK Party

    January 6, 2025
  • North Korea slams Rubio’s ‘rogue state’ label as ‘nonsense,’ vows to push back against Trump administration

    February 3, 2025
  • Trump envoy for Russia and Ukraine calls Zelenskyy a ‘courageous leader’ after Trump lambasts foreign figure

    February 21, 2025
  • Wizz Air Launches ‘All You Can Fly’ Subscription Deal

    August 15, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,251)
  • Investing (634)
  • Stock (832)

Latest Posts

  • Israeli leader tells Biden ‘we have to get hostages back’ who are ‘going through hell in dungeons of Gaza’

    November 12, 2024
  • Analysts are largely bullish on CoreWeave despite post-IPO struggles: read why

    April 22, 2025
  • Europe markets open: Stoxx 600 dips as UK exports nosedive & Trump’s tariff claims sow chaos

    June 12, 2025

Recent Posts

  • DOGE joins budget battle on side of Defense Department

    March 14, 2025
  • Iran’s Khamenei warns of ‘strong blow’ as Trump threatens to drop bombs, Putin silent on US ire

    March 31, 2025
  • ‘Beautiful name’: Trump announces Gulf of Mexico will get new, pro-America revamp

    January 7, 2025

Editor’s Pick

  • Fetterman says RFK Jr confirmation ‘not a slam dunk,’ as Trump HHS nominee shores up support

    February 2, 2025
  • Long AON: bullish momentum above $360 with breakout potential supported by european market resilience

    November 7, 2024
  • Duffy blasts Buttigieg, accusing Biden-era official of ‘mismanagement’: ‘Mayor Pete failed for four years…’

    February 18, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock