Trump's 'Made in USA' iPhone Plan could Backfire
The iPhone might have been conceived in the USA, but is not produced there. If US President Donald Trump has his way, it would be perfectly conceivable to manufacture it from the start to the finish in the United States. We take a look at the facts and came up with a fun exercise of trying to determine the final sticker price should that highly improbable scenario happen. In fact, is an all-US produced iPhone be even feasible?
US President Trump sits smugly in the White House and believes that production of the iPhone could simply be relocated to the USA at the snap of his fingers, quite like Thanos. When asked specifically about the possible US production of the iPhone, White House Press Secretary Karoline Leavitt mentioned the following at the White House press conference yesterday:
Absolutely! He believes we have the manpower, the workforce and the resources to do it. And as you know, Apple has invested 500 billion dollars here in the United States - so if Apple didn't think the U.S. could do it, they probably wouldn't have invested that huge chunk of money.
You could tell from the press in attendance that they weren't convinced, and for good reason. There are legitimate doubts about the feasibility of this idea and also the certainty that such an iPhone would be significantly more expensive than the version manufactured in Asia.
Can Apple produce the iPhone in the USA alone?
The simple answer? No! Not if you want to avoid the counter-tariffs to Trump's punitive tariffs and want to source for every raw material, every worker, and every component from the USA.
However, the opinion seems to be gaining momentum in the US administration that this US-only production of the Apple handset would be feasible. A few days ago, Trump's Secretary of Commerce Howard Lutnick declared in front of television cameras: "The army of millions and millions of human beings turning tiny screws to produce iPhones — that's what's coming to America".
There are several facts to prove that this is complete nonsense:
The Chain and Raw Materials
Apple, which incidentally lost a fifth of its stock value due to Trump's tariffs and is no longer the most valuable company in the world, would have to do more than just build one or two “iPhone plants”. In the article on Trump's tariffs and the impact on US products, I already mentioned how Apple very proudly referred to over 50 countries involved in production. Literally, the Apple site states:
Thousands of companies and millions of people in more than 50 countries are part of our supply chain, contributing their skills, talents and dedication to make, deliver, repair and recycle our products.
Foxconn in China can have specialized components for final assembly delivered within hours because the industry is so well integrated in Shenzhen. This entire infrastructure would first have to be set up in the USA, not withholding the fact that raw materials would still be lacking. Materials such as tantalum, lithium, and tungsten are only available in small quantities in the USA. Up to 80 percent of rare earths come from China and cobalt is virtually non-existent in the USA. Incidentally, the Internet has long been making fun of the USA when it comes to iPhone production:
Chinese memes on American re-industrialization rolling in. lol the music. 😂 pic.twitter.com/GZE2jHDgWZ
— Gabor Gurbacs (@gaborgurbacs) April 7, 2025
Skilled Personnel
Apple doesn't even have the people it needs. The company benefits from being able to scale up in Asia and react quickly: 15,000 workers needed tomorrow? They'll be standing outside the door in China, something unthinkable in the USA. Tim Cook himself also said almost exactly ten years ago that there were not enough skilled workers available in the USA.
While the focus in China was on production, the number of appropriately trained people would be very limited. Precision assembly, quality control, and all the required people in shifts, numbering thousands of employees? Surely, this is not feasible in the USA.
The Costs Involved
Apple and the USA do not have the raw materials, the infrastructure, the industry, or the skilled personnel to manufacture the iPhone from scratch entirely in the USA. So Trump's plan is actually already off the table. We haven't even considered the production costs yet.
Apple would have to pay its employees significantly more, and raw materials and components would still be needed from abroad. At this point, the punitive tariffs, which Trump raised to a total of 104 percent for China a few hours ago, would also come into play again.
How Much Would the 'Made in the USA' iPhone Cost?
Let's take a closer look at what this would mean for the price of the iPhone. Based on what we know at the moment, even the experts are not quite certain. Analyst Dan Ives from the investment firm Wedbush told CNN that a device would cost around $3,500 if production were moved to West Virginia or New Jersey. If Apple were to relocate just ten percent of its supply chain to the States, it would cost Apple around $30 billion alone, as estimated by the analyst.
Needham analyst Laura Martin pointed out that the relocation of 14 percent of iPhone production to India alone took three years. So the time factor also plays a role here.
The New York Post sees the price of an iPhone 16 Pro Max (review) hitting around $2,300 in the future, placing a hefty premium of around $700. Analyst Wayne Lam from TechInsights assumes an increase from $550 to $820 for the iPhone 16e (review) alone in terms of component prices.
Either way, the premium smartphone made in the USA would definitely be a costly handset if we have to assume that Apple will have to pass on at least part of the price increase to buyers.
Why does Donald Trump believe that Apple spent 20 years building up a perfect supply chain with a focus on China, will suddenly shift the entire shebang to the USA? Only he knows. As to how much iPhones will cost in the future, we should find out this year—I'm curious!
Via: Golem.de Source: The White House YouTube-Kanal, New York Post
