Trump Tariffs Expected to Raise iPhone Prices in US

President Donald Trump has reiterated his demand that all iPhones sold in the U.S. be manufactured domestically, threatening Apple with a 25% tariff if it continues production overseas, particularly in India. Experts and analysts warn that relocating Apple's supply chain to the U.S. is impractical, expensive, and would significantly raise costs, potentially causing iPhone prices to soar for American consumers. Apple has already faced increased tariff costs, with CEO Tim Cook noting an expected $900 million impact this quarter alone, and the proposed tariffs could further escalate expenses and complicate production. Critics of Trump's tariff policy, including NYU professor Scott Galloway, argue that these measures threaten economic prosperity and could double or even triple the price of iPhones, highlighting the challenges of onshoring manufacturing given the current supply chain infrastructure. Despite the threats, Apple has not publicly opposed Trump’s stance but is likely seeking dialogue, as building U.S.-based manufacturing capacity would require time and skilled labor. The overall consensus among industry experts is that while some assembly in the U.S. is possible, the full supply chain's relocation is unfeasible, and the tariffs would ultimately burden consumers with higher prices.