How much will Apple iPhones cost in the U.S if Donald Trump imposes 25% tariffs, here's the breakdown
Apple's Shift to India
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If US president Donald Trump follows through on his latest threat, the price of iPhones in the United States could increase soon, as per reports. On Trump's social media site, he warned that Apple would have to pay 25% tariff for iPhones made outside of the United States, as per his post on Friday.The US president wrote that, '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. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.,' as per his Truth Social post.ALSO READ: Greenland dumps Donald Trump, signs lucrative minerals deal with Europe in a major blow to the president Even though at present, Apple's flagship phones are mostly made in China, but the company has been shifting manufacturing to India due to the ongoing trade war between the United States and China which was fuled by the traiffs imposed by Trump, as per reports.Apple CEO Tim Cook said earlier this month that Indian factories would supply the 'majority' of iPhones sold in the United States in the coming months, according to the Financial Times. The iPhone maker reportedly plans to source all of those devices from India by the end of next year, as per the report.According to Financial Times, the move is part of Apple's effort to avoid tariffs on Chinese-made goods imposed by the Trump administration and Foxconn, one of Apple's key suppliers, is investing $1.5 billion to expand iPhone production in India.But Trump's post signals that even Indian-made iPhones may not be safe from his tariffs. Just last week, he expressed frustration over Apple's expansion in India, saying there was 'a little problem with Tim Cook', as per the Financial Times.Wall Street analysts have warned that building iPhones entirely in the United States is not a realistic option, as per CNBC. Some experts estimate that shifting all production stateside would increase the price of an iPhone by at least 25%, according to the report. Analyst Dan Ives of Wedbush Securities estimated that a US-made iPhone could cost around $3,500, while the iPhone 16 Pro retails for about $1,000, as per CNBC reported.Industry analysts say it is virtually impossible for Apple to make their products entirely in the United States anytime soon, according to Variety.The Wedbush Securities analyst wrote in a research note that, "Trump's pressure on Apple to build iPhones in the United States would result in an iPhone price point that is a non-starter for Cupertino and translate into iPhone prices of ~$3,500 if it was made in the U.S., which is not realistic as this would take 5-10 years,' adding, 'We believe the concept of Apple producing iPhones in the U.S. is a fairy tale that is not feasible,' quoted Variety.He's pushing for more US-based manufacturing and is unhappy that Apple is expanding production in India instead of bringing jobs home.Some components are made in the US, but full assembly happens mostly in China and increasingly in India.
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