CNBC AI News, May 24 — Former U.S. President Donald Trump claimed in a social media post that he has urged Apple CEO Tim Cook to shift iPhone production to the United States, threatening a 25% tariff on devices manufactured in India or elsewhere. The proposal, analysts say, could trigger seismic shifts in global supply chains while exposing deep fissures in the economics of tech manufacturing.
Shares of key Apple suppliers tumbled following the remarks, with Cirrus Logic down 2.3%, Skyworks Solutions sliding 4.2%, Qorvo declining 3%, Micron Technology dropping 3%, and Broadcom falling 1.6% in early trading. The selloff reflects investor concerns over potential disruptions to Apple’s meticulously optimized Asia-centric production network.
Relocating iPhone assembly to U.S. soil would require Apple to overhaul decades of infrastructure investments, with analysts estimating a 5-10 year timeline and billions in capital expenditures. More critically, domestic manufacturing could send iPhone prices soaring to $3,500 per unit—a near tripling of current premium models—making the devices inaccessible to most consumers.
“This isn’t just about tariffs; it’s about unraveling the very architecture of globalized tech production,” said Marco Pérez, senior strategist at Supply Chain Insights. “Apple’s margins rely on hyper-efficient Asian ecosystems. Replicating that stateside would demand reengineering everything from component sourcing to labor logistics—a fatal blow to their business model.”
While the political posturing highlights growing tensions over tech sovereignty, industry executives privately dismiss the feasibility of rapid reshoring. Apple’s 2019 exploration of U.S. Mac Pro production—a far simpler device than iPhones—required tariff exemptions and still resulted in components imported from China. The episode underscores why analysts view Trump’s latest gambit as more of a negotiating tactic than an executable policy.
As Washington and tech giants wrestle over production footprints, the broader question remains: Can “Made in America” mandates coexist with consumer expectations for affordable, cutting-edge devices? For now, markets appear to bet against it.
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