U.S. trade director (and Trump flunky) Peter Navarro is attacking Apple again because — when it boils down to it — the tech giant isn’t moving iPhone manufacturing to the U.S. from China.
In an interview with Fox Business, he said thinks that it is “too big to tariff.” Earlier this week, Navarro targeted Apple in a CNBC interview criticizing Tim Cook for failing to move Apple manufacturing from China to the United States. He says it’s “inconceivable” that Apple can’t manufacture the iPhone anywhere but China.
From the interview: Going back to the first Trump term, Tim Cook has continually asked for more time in order to move his factories out of China. I mean, it’s the longest running soap opera in Silicon Valley. And my problem with Tim Cook is he never takes the steps to actually do that. And with all these new advanced manufacturing techniques and the way things are moving with AI and things like that, it’s inconceivable to me that Tim Cook could not produce his iPhones elsewhere around the world and in this country.
Actually, Apple has moved a lot of iPhone manufacturing from China to India. But Trump didn’t like that either. In May he threatened Apple will a 25% tariff unless the company only manufactures its iPhones in the U.S.
The warning came via Truth Social — the social platform owned by Trump Media & Technology Group — after CEO Tim Cook announced that Indian facilities would handle the majority of U.S. iPhone sales. Apple’s pivot to India was widely seen as a strategy to sidestep Chinese manufacturing amid ongoing trade tensions.
“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump wrote. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your [sic] for your attention to this matter!”
Despite Trump and Navarro’s ridiculous rhetoric, it will/would take years for Apple to move the bulk of its iPhone manufacturing to the U.S.
According to various pundits, if iPhones were made in the US instead of China, they would likely be significantly more expensive, potentially costing over US$3,000, due to the higher cost of labor and establishing a new supply chain domestically. While some components are already sourced from the US, such as Corning’s Gorilla Glass, the infrastructure and workforce needed to assemble iPhones on a large scale in the US aren’t currently in place.
As reported by CNBC, one analyst estimates that on labor costs alone, an iPhone made in the U.S. could cost 25% more than it does now. Another analyst pegged the price of a U.S.-made iPhone at $3,500.
Defending its “reciprocal tariffs,” the White House on May 23 President Donald Trump believes the U.S. has the workforce and the resources to build iPhones in the U.S. Sadly, our President is clueless about this (as well as many other things).
Should Apple be working to move more of its manufacturing processes to this country? Of course. But that’s going to be a long, slow process.
Bank of America analysts say that moving iPhone production from China to the U.S. could increase manufacturing costs by up to 90%, reports Bloomberg (a subscription is required to read the article).
Such a move is technically possible. However, Bank of America analysts say it would drastically increase production costs and result in logistical complications.
“iPhone cost can increase 25% purely on higher labor cost in the U.S.,” the Bank of America analysts told clients. They said even if Apple finds domestic workers for final assembly, a “significant portion” of iPhone components would still need to be manufactured in China and imported to the U.S.
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