Making iPhones in the U.S. is More Expensive for Apple than Trump's Tariffs

If President Trump’s proposed tariff’s on China were to pass, iPhones could end up being much more expensive for Americans to buy.

Trump recently announced he’s still considering additional tariffs on the Asian nation’s exports, which would include Apple’s signature products like the iPhone and its various laptops, CNN reported.

To compensate for this tax levied on its goods, Apple would have to raise prices.

“The direct impact would be in the United States,” IDC research firm analyst Bryan Ma told CNN. “If push comes to shove, 25% on a $1,000 phone is not a joking matter, regardless if Apple absorbs some of that or if it’s largely passed onto the consumer.”

One of Trump’s goals in issuing the tariff is to pressure Apple to move production to the U.S.; but the cost of shifting the tech leader’s global supply chain from China to America would be expensive, difficult and, therefore, “highly unlikely.”

Add to that the fact that American labor and production facilities are more costly than they are in China, and the price of the iPhone likely jumps beyond what experts assume it may be if a tariff is put in place.

“If they did make the smartphones in the US, it would add somewhere between 20% to 35% more to the final consumer prices of the phones sold to the public,” Creative Solutions president Tim Bajarin said.