iPhones Made in America? Trump Renews Pressure on Apple

On May 23, 2025, US President Donald j Trump launched fresh attacks on Apple, issuing a final ultimatum: If Apple wants to sell its products in the US market, it should start manufacturing in the United States or face tariffs of at least 25% on devices manufactured abroad.

This declaration is once more a try in Trump's long-standing wish to bring Apple's manufacturing back to America. Since his presidential campaign of 2016, he has promised about the tech giant to "start building their damn computers and things in this country instead of other countries.”

Until now, instead of returning to the U.S., Apple has diversified its manufacturing base across Asia, expanding its operations in India, Vietnam, and Thailand. However, approximately 80% of iPhones are still made in China.

According to the New York Post, the Indian government have approved Foxconn, Apple's major supplier and manufacturing partner, to build a $433 million semiconductor plant starting operations no later than 2027.

Is it Possible for iPhone to be made in the US?

Technically, yes– it is very possible to witness iPhones manufactured in America, but experts warn that it would be logistically and economically a heavy challenge. According to Wayne Lam, a market analyst at TechInsights, stated iPhone price would jump twice if it were domestically produced, pushing it to $2000 or even more.

"It's absurd," Wayne Lam remarked. “In the short term, it’s not economically feasible.” To manufacture in the US, Apple have to invest heavily in automation and purchase new machinery. It is well known that the US labour force is smaller and more expensive than China's.

Matthew Moore, the former Apple manufacturing design manager, noted that there is a benefit to domestic production; it could reduce environmental costs linked to shipping, but still, the benefits are small compared to the major challenges of making it work.

What Does China Offer That the U.S Doesn't?

China has some deep structural advantages. It has a huge, flexible labour force, tons of engineers, and factories that have special capabilities for making specific things.

Young Chinese women have smaller hands and fingers than average US women, which makes them more efficient and a valuable contributor to iPhone production for their ability to handle precisely tiny components. Where it is rare to find US labour with these niche skills, said a supply chain expert.

A big reason for China's success in manufacturing is because of its large seasonal workforce. During peak production, as Apple starts production of a new iPhone, millions of workers migrate to factory jobs for several months, often from the summer until the Chinese New Year. Living in dorms right next to huge factories, some even longer than football fields. This setup helps the company to increase production rapidly without paying full-time wages for the year, like they would have to in the US.

Once Tim Cook, CEO of Apple, pointed out the difference sharply: where China could fill football fields with its tool engineers, the US could barely fill a room.

Matthew Moore said, "These are sophisticated factories with thousands of engineers," he continues, "you can't just pick it up and move it."

Why Has Apple Shifted Some Production to India?

To avoid local taxes on importing iPhones from China, Apple started boosting its manufacturing in India. The world's second-largest smartphone market after China is India. Apple also wants to increase its sales here, but due to the high price, it couldn't strengthen its ground in tier II or tier III towns. It is also one of the reasons for starting production inside the country.

In many ways, India relates to China of two decades ago: a youthful, engineering-rich labour force and government incentives successfully appeal as a manufacturing hub in the world. Apple also saw the country as a promising spot for its long-term plans.