• Trump threatens a 25% tariff on iPhones not produced in the U.S.
• The tariff also applies to other smartphone makers like Samsung.
• Experts say moving production to the U.S. is nearly impossible.
• Analysts suggest absorbing the tariff might be financially better for Apple.
• Trump's comments come as Apple shifts some manufacturing to India.

US President Donald Trump has announced a 25% tariff on iPhones not produced in the U.S., emphasizing that this policy will apply not only to Apple but also to all smartphone manufacturers, including Samsung. He stated that iPhones sold within the U.S. must be manufactured domestically, with the tariffs expected to take effect by the end of June. Trump's comments reflect a broader strategy to re-shore jobs and combat what he perceives as unfair international trade practices, according to Channel News Asia and India Times.

During discussions with Apple CEO Tim Cook, Trump expressed dissatisfaction over Apple's plans to expand production in India, reinforcing his demand for U.S.-based manufacturing. He indicated that while Apple can establish plants abroad, they would face the hefty tariff on products sold back to the U.S. if not manufactured domestically. In his words, "I expect their iPhones...to be manufactured and built in the United States, not India, or anyplace else," as reported by India Times and South China Morning Post.

Economic experts warn that the shift of production to the United States presents substantial challenges. Analysts from Wedbush have forecast that realigning Apple's iPhone manufacturing to the U.S. could take more than a decade and significantly raise retail prices—potentially to around $3,500 for a device currently priced at about $1,200. "We believe the concept of Apple producing iPhones in the U.S. is a fairy tale that is not feasible," Dan Ives stated, according to Channel News Asia and India Times.

As negotiations unfold, analysts suggest that it may be financially more prudent for Apple to absorb the potential tariffs rather than attempt a costly relocation of its assembly lines. Ming-Chi Kuo, a prominent analyst, noted, "In terms of profitability, it's way better for Apple to take the hit of a 25% tariff on iPhones sold in the US market than to move iPhone assembly lines back to the U.S.," highlighting that while high tariffs present a challenge, moving production may be impractical, according to insights from India Times.

Notably, the Global Trade Research Initiative has asserted that despite the looming tariff, production costs in India would still be significantly lower than manufacturing in the U.S., suggesting that Apple may continue to balance production locations to sustain profitability, as outlined in their recent findings reported by India Times.