Apple’s Supply Chain Under Scrutiny as Trump Demands US Production

Apple’s global supply chain is under intense scrutiny as Donald Trump demands US production for iPhones, threatening a 25% tariff on devices not made domestically. This direct challenge, communicated via Truth Social, immediately impacted Apple’s shares, wiping billions from its valuation and signaling investor apprehension. The former president is intensifying his pressure on the tech giant to localize its supply chain.
Trump explicitly informed Apple CEO Tim Cook that iPhones sold in the US must be built within the country’s borders, not in India or any other overseas location. He expressed his disappointment with Apple’s reported move to assemble US-bound iPhones in India, emphasizing that his administration had been supportive of the company’s past manufacturing decisions in China.
The proposed tariff isn’t limited to Apple; Trump made it clear that Samsung and all other phone manufacturers producing devices outside the US would face the same 25% levy. He highlighted that establishing manufacturing facilities within the US would be the path to tariff exemption, thereby encouraging significant investment in American industries. This broadens the scope of his manufacturing mandate.
Nevertheless, financial analysts and manufacturing experts are raising serious concerns about the feasibility and cost of this proposed shift. They highlight the lack of a comparable manufacturing ecosystem and flexible workforce in the US compared to established hubs in China. The staggering estimate of a US-made iPhone costing $3,500 vividly illustrates the significant economic hurdles and potential consumer impact.