President Donald Trump’s recent announcement of increased import tariffs on multiple countries has sparked concerns about rising costs in technology manufacturing, with experts warning of dramatic price hikes for products like the iPhone.
During his Liberation Day speech, President Trump emphasized that the primary goal of the tariff increases was to draw manufacturing industries back to the United States and generate millions of new jobs for Americans. He asserted that setting tariffs at such a high level would leave multinational companies with little choice but to move their production operations to American soil.
Despite these intentions, some experts argue that the expected economic benefits may not materialize as envisioned. Dan Ives, global head of technology research at Wedbush Securities, described the idea as unrealistic, suggesting that the complexities involved make such a relocation highly impractical. According to Ives, tech giants like Apple benefit immensely from the established manufacturing ecosystems in Asia, and moving operations to the United States would come at a significant cost.
Ives specifically warned that shifting iPhone production to the US could result in a staggering price increase for consumers. Speaking to CNN, he predicted that the unit price of an iPhone could soar to $3,500, compared to the current average of about $1,000. This sharp rise would be a direct consequence of trying to replicate the intricate and cost-efficient manufacturing environment found in Asia.
He elaborated that Apple would need to build advanced fabrication plants and chip manufacturing facilities in the US to match the existing Asian supply chain. Presently, critical iPhone components such as screen panels are produced in South Korea, chips are manufactured in Taiwan, and various other parts are both made and assembled in China. Apple’s decision to manufacture in Asia was largely driven by lower costs and the region’s well-established supply networks, while its American operations have primarily focused on software and product design.
Ives estimated that Apple could be forced to spend as much as $30 billion over three years just to shift 10% of its supply chain from China and Taiwan to the United States. The analyst cautioned that this would not only affect Apple but also drive up prices for a wide range of goods, including electronics and clothing, as a direct result of the new tariffs.
Since Trump’s inauguration in January, technology stocks have faced significant challenges. Apple, for example, has seen its share value decline by about 25%. The latest announcement of increased tariffs triggered further declines, with global stock markets reacting negatively and experiencing noticeable dips.
The trade tensions have escalated further as China responded to the US tariffs by imposing its own retaliatory measures, sparking fears of a deepening trade conflict between the two world powers. President Trump countered by threatening an additional 50% levy on Chinese goods in response to China’s retaliation to the initial 34% US tariff. In turn, China condemned the US actions as “blackmail” and vowed to resist the tariffs, raising concerns that the standoff could intensify and lead to broader economic repercussions.
