The White House has defended its “reciprocal tariffs,” stating that President Donald Trump believes the United States possesses both the workforce and the resources to manufacture iPhones domestically. However, industry analysts argue that producing an iPhone in the U.S. ranges from being extremely costly to outright unfeasible.
Experts in the field point out that a U.S.-manufactured iPhone could be drastically more expensive. One analyst estimates that labor alone would add 25% to the cost, while another suggests the price tag could balloon to $3,500.
When former President Barack Obama asked Apple co-founder Steve Jobs about the possibility of making iPhones in the U.S., Jobs responded bluntly in 2011, saying, “Those jobs aren’t coming back.”
Although both the presidency and Apple’s leadership have changed since then, the aspiration to make a “Made in the USA” iPhone persists. The White House reiterated on Tuesday that President Trump is confident in the country’s capacity to produce iPhones. Yet, Apple CEO Tim Cook and other Apple executives have not endorsed that position.
As this idea remains largely theoretical, the projected costs vary widely. Bank of America Securities analyst Wamsi Mohan noted that the iPhone 16 Pro, currently priced at $1,199, could jump to approximately $1,500 if manufactured in the U.S. due to labor expenses alone. Meanwhile, Wedbush analyst Dan Ives estimated that a U.S.-built iPhone might cost $3,500, based on Apple needing to invest $30 billion over three years just to shift 10% of its supply chain to the U.S.
Currently, over 80% of Apple products are produced in China. These products are now subject to a 145% tariff when imported into the U.S., as Trump’s new trade measures have taken effect.
Experts cite multiple obstacles to U.S.-based iPhone production, including the challenge of hiring and paying an American workforce and managing the costs of importing parts for assembly. Broad consensus among analysts suggests the project is unlikely. “I don’t think that’s a thing,” quipped Laura Martin of Needham during a CNBC segment.
Jeff Fieldhack, research director at Counterpoint Research, called the idea unrealistic, saying, “It’s just not a reality that on the time frame of imposing tariffs that this is going to shift manufacturing here. It’s pie in the sky.”
Apple’s product design takes place in California, but manufacturing is outsourced to firms like Foxconn, its top supplier. Building production facilities and setting up operations in the U.S. would take years, with no guarantee that future shifts in trade policy wouldn’t undercut those efforts.
A major issue is the stark difference in labor force availability between the U.S. and China. Nonetheless, the Trump administration views the scale of iPhone assembly labor as a potential domestic opportunity. “The army of millions and millions of human beings screwing in little screws to make iPhones, that kind of thing is going to come to America,” said Commerce Secretary Howard Lutnick on CBS.
Foxconn operates sprawling manufacturing campuses in China equipped with dormitories and shuttle services. The company employs a seasonal workforce, with hiring surging ahead of fall product releases. This efficient system enables Apple to produce over 200 million iPhones annually.
However, Foxconn’s labor practices have come under scrutiny. In 2011, nets were installed around buildings following a series of worker suicides. Despite concerns about working conditions, Foxconn hired an additional 50,000 employees last year to support the iPhone 16 rollout, as reported by Chinese media.
Labor costs in China remain significantly lower than in the U.S. During the iPhone 16 production ramp-up, Chinese workers earned 26 yuan per hour, or about $3.63, and received signing bonuses worth roughly $1,000. In contrast, California’s minimum wage is $16.50 per hour. Mohan estimates that assembling and testing an iPhone in the U.S. would cost $200 per device, compared to $40 in China.
Cook has pointed out that American workers often lack specific technical skills required in iPhone production. In a 2017 interview, he said the U.S. does not have enough tooling engineers — professionals who configure the machines that transform digital designs into physical products. “The reason is because of the quantity of skill in one location, and the type of skill it is,” Cook explained.
He illustrated the disparity by saying that in China, a meeting of tooling engineers could fill “multiple football fields,” while in the U.S., gathering even one field’s worth would be difficult.
Past efforts to move production to the U.S. haven’t succeeded. In 2017, Trump announced a $10 billion investment from Foxconn for plants in Wisconsin. Although Apple wasn’t officially involved, Trump claimed the company would build “three big beautiful plants” in the U.S. The Wisconsin site eventually shifted its plans multiple times and ended up manufacturing face masks during the pandemic, with only 1,454 jobs created out of the 13,000 promised. Much of the facility remains incomplete.
Apple also attempted to localize production in Brazil in 2011 to avoid heavy import duties. The plant continues to operate and will help Apple offset tariffs with iPhone 16 production, according to Brazilian media. However, even after launching a $12 billion facility, most components were still imported from Asia. In 2015, four years after its launch, Brazilian-made iPhones were double the cost of those made in China, Reuters reported.
Some progress has been seen with Apple’s main chip supplier, Taiwan Semiconductor Manufacturing Co. TSMC now manufactures small batches of advanced chips at a new Arizona facility, and Apple remains a committed client.
Still, even if final assembly were moved to the U.S., the iPhone relies on globally sourced parts, many from countries hit by U.S. tariffs. The processor comes from Taiwan, the display from South Korea, and several other components from China. Unless Apple can negotiate exemptions, these parts would all be tariffed. Semiconductors are currently exempt.
Though Trump paused most tariffs for 90 days, Mohan warns that if they resume, the price of a U.S.-assembled iPhone 16 Pro Max could jump 91% due to tariffs and labor costs. “While it may be possible to move final assembly to the U.S., moving the entire iPhone supply chain would be a much bigger undertaking and would likely take many years, if even possible,” Mohan wrote.
While Jobs dismissed the notion of an American-made iPhone, Cook has taken a more diplomatic path. He attended Trump’s 2017 inauguration and maintained engagement, leading to Apple securing temporary tariff exemptions for key products during Trump’s first term. The company pledged to invest $500 billion in the U.S., including AI server production in Houston — a move Trump regularly praises.
One symbolic gesture came in 2019 when Apple announced continued assembly of the $3,000 Mac Pro at a Flex facility near Austin, Texas. Trump toured the plant with Cook. Analysts believe Apple may produce limited items domestically to appease Trump. “Given we now know that the Trump administration is willing to negotiate, we wouldn’t be surprised to see Apple commit to some small-volume production in the US (HomePod? AirTags?),” Morgan Stanley analyst Erik Woodring wrote in a note.
Apple declined to comment.