U.S. tariffs targeting the Chinese mainland have sparked debate over whether Apple could shift iPhone production to American soil. Despite tariffs now reaching 145% on Chinese-made goods, analysts argue that relocating Apple’s manufacturing ecosystem remains economically unfeasible.
At the core of the challenge is Apple’s deeply entrenched supply chain in China, cultivated since the 1990s. Replicating this network in the U.S. would require billions in investments and years of development, with Wedbush Securities estimating production costs could triple iPhone prices to over $3,000. “The concept of making iPhones in the U.S. is a non–starter,” said analyst Dan Ives, noting such a shift risks alienating consumers and disrupting sales.
Apple has remained silent on how it intends to navigate the tariff landscape, but CEO Tim Cook may address the issue during the company’s quarterly earnings call on May 1. Investors are closely watching the outcome: Apple’s market value has already dropped $500 billion since tariffs escalated in early April.
The standoff highlights broader tensions in U.S.-China trade relations and underscores the complexities of globalized tech manufacturing. For now, industry experts agree: China’s supply chain infrastructure remains unmatched, and shifting production is a gamble few companies can afford.
