No matter what Donald Trump says, Apple just can't make iPhones in the U.S. — here's why
Trump's Tariff Threats and the India-Vietnam Workaround
President Donald Trump recently reiterated his call for Apple to produce iPhones in the U.S., warning of a 25% tariff on devices not made domestically. While Apple has stated that some of its production now takes place in India and Vietnam, industry experts question the substance of these claims.
Journalist Patrick McGee, author of
Apple in China: The Capture of the World's Greatest Company
, calls Apple's workaround 'deeply misleading', as mentioned in a report by Business Insider.
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According to McGee, final assembly in India does not reflect meaningful production. 'If making an iPhone takes a thousand steps, and only the final one is done in India, that doesn't make it Indian-made,' he noted, as quoted in a report by Business Insider. The strategic rebranding may help Apple avoid tariffs, but it does little to reduce its dependence on China's industrial ecosystem.
Why iPhones Can't Be Made in America
McGee, a long-time Apple correspondent for the Financial Times, emphasizes that Apple's entrenchment in China spans decades. The nation offers unmatched advantages: massive labor pools, dense networks of sub-suppliers, flexible logistics, and cost-efficiency.
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'A single Chinese factory town can field half a million workers for three months just to assemble iPhones,' he said. 'There's no American equivalent—either in scale, skill, or cost.'
He further pointed out that China's so-called 'floating population'—a flexible labor force—surpasses the entire U.S. workforce in size and dynamism.
'Even if the U.S. wanted to compete on this front, it simply can't,' McGee remarked, adding that America also lacks the physical and regulatory infrastructure to support such rapid, large-scale assembly operations.
The Unseen Risk: Technology Transfer to China
McGee also raised alarms about the long-term strategic cost of keeping production in China. 'Each year, Apple's innovations are built in Chinese factories. That inherently transfers technological know-how to China,' he explained, as quoted in a report by Business Insider.
For a country that Washington increasingly views as a strategic adversary, this ongoing knowledge exchange could prove damaging.
While Apple's relationship with China is primarily business-driven, the outcomes carry geopolitical implications. 'You're essentially enabling your biggest rival by embedding your best technology within their industrial base,' McGee said.
Will iPhone Prices Rise?
Despite facing close to $900 million in tariff-related costs in an upcoming quarter, Apple's financial scale allows it to absorb some of the burden. However, consumers could still face higher iPhone prices. Analysts anticipate that Apple will pass on part of the increased costs, potentially affecting the next generation of devices.
With Donald Trump continuing to push for a U.S.-centric manufacturing policy, and Apple signaling token shifts to countries like India, the tension between political will and industrial reality remains unresolved. But one thing is clear: the dream of an iPhone 'Made in America' is far from achievable, for now.
FAQs
What did President Trump say about iPhone manufacturing?
Trump stated he expects Apple to manufacture iPhones in the U.S. or face tariffs of at least 25%.
How much could an iPhone cost under these policies?
Estimates range from a $100–$200 increase to over $3,000 for a fully U.S.-made iPhone, depending on tariff implementation and production shifts.
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