Trump urges Apple to shift iPhone production to the US amid rising China tariffs

As US-China trade tensions escalate, Trump sees opportunity for Apple to bring manufacturing home.

People wearing traditional Chinese clothing walk past an Apple store on a shopping street in Beijing on April 8, 2025. Photo by Wang Zhao/AFP

By Anna Fadiah and Hayu Andini

Trump urges Apple to shift iPhone production to the US amid rising China tariffs, highlighting growing concerns over the United States' reliance on Chinese manufacturing and rising costs for American consumers. As the trade war intensifies between the two economic powerhouses, President Donald Trump has expressed confidence that the tech giant will respond to newly implemented tariffs by bringing jobs and production back to American soil.

Speaking at a press conference, Trump reiterated his commitment to revamping the nation’s manufacturing base. His recent push comes in the wake of sweeping import duties on Chinese goods—tariffs that have made headlines and stirred debate across both political and business circles.

On April 2, Trump imposed a 34 percent reciprocal tariff on Chinese imports. That measure took effect on April 9. But it didn’t stop there. Just one day before, on April 8, he introduced an additional 50 percent tariff, pushing the total tariff burden on Chinese imports to a staggering 84 percent. Among the most impacted items are iPhone components and consumer electronics, most of which are assembled or sourced in China and neighboring Asian markets.

Why Apple’s supply chain matters

Apple’s global supply chain is a finely tuned machine. It involves sourcing parts and assembling iPhones in several countries, with China playing the most significant role. From displays to batteries and internal processors, Chinese factories and workers help create the sleek devices millions rely on daily.

However, this reliance on China has long drawn criticism from policymakers in Washington. Trump’s administration has been especially vocal, arguing that outsourcing not only undermines American jobs but also exposes US businesses to risks—especially during times of geopolitical tension.

According to the president, Apple could protect its bottom line and help the US economy by relocating iPhone production to America. "It’s time Apple invested more in American workers," Trump said. "These tariffs will make importing from China less attractive and will encourage companies like Apple to bring their operations home."

The economics of reshoring production

Moving iPhone production to the US sounds appealing on paper. It aligns with Trump’s America First policy and promises a boost to domestic employment. But in practice, the economics are far more complex.

Manufacturing iPhones in the US would require massive investment in infrastructure, labor retraining, and compliance with American labor laws. The current supply chain exists largely in Asia for a reason: efficiency and cost. Labor costs in China are significantly lower than in the United States, and the supporting ecosystem of suppliers is deeply entrenched.

Apple has never dismissed the idea of expanding its US footprint. The company already assembles some Mac models in Texas and has invested in American suppliers. But moving large-scale iPhone production—millions of units each month—is a different story altogether.

Rising costs and potential consequences

The tariffs imposed by the Trump administration are already having ripple effects across the tech industry. With Chinese imports now facing up to 84 percent in tariffs, costs for Apple could rise sharply. That increase may eventually be passed on to consumers in the form of higher retail prices for iPhones and other Apple products.

Industry analysts warn that unless Apple can negotiate exemptions or shift production quickly, it will face tough choices. It could absorb the cost increase and lower profit margins, or raise prices and risk losing market share to competitors like Samsung, whose manufacturing is more diversified.

Furthermore, if the US becomes a more expensive place to manufacture, Apple’s global competitiveness could suffer. This presents a dilemma not only for the company but also for policymakers who want to bring jobs home without disrupting major American brands.

Why Apple is looking elsewhere

Rather than immediately moving to the US, Apple has been diversifying its supply chain in other regions. India and Vietnam, for example, have emerged as attractive alternatives to China. Apple has already begun assembling certain iPhone models in India, both for domestic sales and export. Vietnam has become a hub for AirPods and other peripheral devices.

These countries offer a balance between lower costs and improved geopolitical stability. Unlike China, they are not at the center of a tariff war with the United States, which makes them safer bets for long-term investments.

Still, Trump’s tariffs have put new pressure on Apple to consider expanding its US operations more seriously. Analysts believe that while a full production shift may not happen immediately, incremental changes—like final assembly or packaging—could occur within the next few years.

Broader implications for US-China trade

Trump’s broader strategy appears to be one of pressure and persuasion. By making it more expensive to rely on Chinese imports, he aims to accelerate the reshoring of American manufacturing. Apple, as one of the world’s most valuable companies and a symbol of American innovation, is at the center of this push.

This strategy isn’t just about one company. It's about reshaping the global economic landscape, where trade relationships are increasingly viewed through the lens of national security and strategic competition. And with China being both a rival and a crucial trading partner, the stakes couldn’t be higher.

Trump’s optimism that Apple will move iPhone production to the US is not just about technology or economics. It's a political statement—one that resonates with voters in key manufacturing states like Michigan, Ohio, and Pennsylvania. Whether Apple will follow through remains to be seen.

A calculated gamble

As Trump urges Apple to shift iPhone production to the US amid rising China tariffs, he’s betting on a broader transformation of the global tech economy. The tariffs are a blunt tool—but a powerful one. Whether they are effective in reshoring jobs or simply drive production to other parts of Asia, one thing is clear: the US-China trade war is reshaping the future of tech manufacturing.

Apple, for its part, must now balance its brand image, customer base, and cost efficiency in a rapidly changing geopolitical landscape. The coming months will reveal whether Trump's gamble pays off—or whether the world’s most famous smartphone remains tethered to factories far from home.