Overview

• President Donald Trump has threatened a 25% tariff on smartphones made outside the U.S., including iPhones and Samsung devices, if manufacturing is not relocated domestically.
• Apple plans to source the majority of U.S.-bound iPhones from India by mid-2026, with Foxconn investing $1.48 billion in Indian production facilities.
• Analysts warn that U.S.-made iPhones could cost up to $3,500 due to high labor and operational expenses, making domestic production economically unfeasible.
• The proposed tariffs are expected to increase consumer prices, with estimates suggesting a $140 price hike per iPhone, potentially dampening demand in the U.S. market.
• The tariff deadline is set for the end of June 2025, with ongoing negotiations and geopolitical factors shaping the outcome of this high-stakes policy dispute.