US President Donald Trump, during his “Liberation Day” address, declared that American jobs and factories would come "roaring back" as a result of sweeping global tariffs. However, experts warn that the economic consequences may fall heavily on American consumers—especially when it comes to everyday technology.
A prominent voice among those sounding the alarm is Dan Ives, global head of tech research at Wedbush Securities.
Speaking to CNN’s Erin Burnett, Ives stated that relocating Apple’s iPhone production to the United States could push the price of a single device to an eye-watering $3,500 — over three times its current average cost.
“Building Apple’s complex supply chain in the US with facilities in places like West Virginia or New Jersey would result in iPhones priced at $3,500,” Ives explained, referencing the fabrication plants needed to produce high-end chips and components. “It’s a fictional tale to say manufacturing will just come back overnight.”
Ives also noted that shifting just 10% of Apple’s supply chain to the US could cost the company up to $30 billion and take at least three years to implement.
The current iPhone supply chain is deeply embedded in Asia. Components such as chips are manufactured primarily in Taiwan, displays are sourced from South Korea, and final assembly takes place mostly in China — where nearly 90% of iPhones are assembled.
Since Trump’s push for tariffs began, Apple’s stock has dropped about 25%, largely due to fears over supply chain disruptions. Ives believes Apple is the company most directly impacted by the tariff war, stating, “It’s a category five storm for Cupertino. This is economic Armageddon, especially for the tech industry.”
Apple had previously announced plans to invest $500 billion in the US over four years to diversify production and cushion the impact of tariffs.
The company has also looked to countries like India and Brazil to reduce dependency on China. However, both nations come with their own tariff and capacity limitations. India faces a 26% tariff, while Brazil is hit with a 10% rate but lacks the production volume to replace Chinese capacity.
Tech analysts widely agree that iPhone prices will likely rise regardless of whether Apple reshuffles its supply chain.
Rosenblatt Securities projected that iPhone prices could increase by up to 43% if Apple passes the full tariff burden onto consumers. Neil Shah of Counterpoint Research estimates a 30% price hike, depending on where manufacturing is relocated.
Ultimately, Trump’s tariff policy, while aimed at reshoring American manufacturing, may have unintended consequences — driving up consumer prices and challenging the viability of high-tech production within the US.