CNBC AI News, May 24 — Former U.S. President Donald Trump has reignited tensions over global tech supply chains, threatening to impose tariffs of “at least 25%” on Apple iPhones unless the company relocates production to the United States, according to multiple media reports.
The ultimatum, framed as part of a broader push for domestic manufacturing, reportedly extends to other smartphone giants like Samsung. Trump suggested that companies establishing U.S.-based assembly operations could secure tariff exemptions—a proposal analysts view as both politically charged and economically fraught.
Apple’s calculated calculus appears clear: Renowned TF International Securities analyst Ming-Chi Kuo argues the tech titan would “prefer absorbing a 25% tariff hike over reshoring iPhone assembly lines” from a profitability standpoint. The logistical hurdles of relocating Apple’s intricate, China-centric supply web within Trump’s potential term make such a pivot “unrealistic,” Kuo notes, adding that any temporary agreement could unravel under shifting political winds.
Wall Street remains equally skeptical. Wedbush analyst Dan Ives likened U.S.-based iPhone production to a “corporate fairy tale,” estimating a 5-10 year transition timeline that could inflate device prices to $3,500—a scenario that risks crushing consumer demand. “The math simply doesn’t add up,” Ives emphasized in a research note, pointing to Apple’s reliance on China’s vertically integrated ecosystem spanning from battery makers to microchip suppliers.
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