While Apple remains one of the biggest companies in the world and boasts a $2.59 trillion net worth, there are fears that it’s recent stock struggles could be about to get worse. President Donald Trump’s introduction of customizable tariffs are supposed to usher in the new ‘Gilded Age’ of America after he claimed allies and enemies alike have been ‘pillaging’ the USA.
Instead, he’s accused of decimating the tech industry.
At the center of Donald Trump’s tariffs is China, and after originally levying a harsh 54% on foreign imports, he’s now boosted it to an ‘explosive’ 104%.
This effectively means that any parts or products coming from China could cost double.
The defiant POTUS warned that any retaliation against his tariffs would lead to more extreme measures, and overnight, he’s announced a massive 104% tariff on goods from China.
We were already warned that these Trumpenomics could reshape the tech industry, and while Apple is about as American as apple pie, there’s no escaping the fact that most of its manufacturing goes on in China.
More than this, 90% of iPhones are assembled there, meaning that these tariffs could hit consumers hard in the pocket when it comes to the cost of the next iPhone.
We’ve already seen Nintendo delay the release date of the Switch 2 in the USA until it can figure out a potential price rise.
As reported by CNN Business, a possible workaround could see iPhone manufacturing moved to the USA.
While this sounds good in principle, and is sure to impress Trump as he vows to bring manufacturing back to America, tech analyst Dan Ives thinks this could lead to prices tripling.
The idea of paying $3,500 for an iPhone is one that’s sure to go down like a lead balloon with consumers.
Ives is the global head of technology research at financial services firm Wedbush Securities, saying that Trump’s idea to ‘reshore’ manufacturing to the USA and boost the economy is a “fictional tale.”
He went on to explain how Apple would have to try and replicate the ‘complex production ecosystem’ that’s currently in place in Asia: “You build that (supply chain) in the US with a fab in West Virginia and New Jersey. They’ll be $3,500 iPhones.”
Others have pointed out that not all of the parts of an iPhone will be hit with China’s 104% tariff, and we’re also not taking into account what Apple actually pays to make an iPhone rather than the cost it’s sold to us at.
Even though there are questions about what the upcoming iPhone 17 will cost and whether Apple will go down the Nintendo route of delaying until it can figure out a proper pricing structure in a post-tariff landscape, Ives says that even completely moving things to the USA will take time.
Trump’s tariffs could increase the cost of an iPhone Pro by almost $300. Who pays for it? Us or Apple? pic.twitter.com/hK8YiJFnlX
— Joanna Stern (@JoannaStern) April 5, 2025
Even if Apple were to move its production ecosystem to the US, it would apparently come at a cost of $30 billion and take three years just to move 10% of its supply chain.
We’re reminded how much of the manufacturing side of big businesses like Apple moved to Asia while the American arm focused on design and development. Apple shares have dipped by 24.88% in the last six months, while 24.20% of that has occurred in the past month, and 22.12% is in the past five days alone.
Referring to the current situation as a Category 5 storm for Apple, Ives concluded: “It’s an economic Armageddon, but especially for the tech industry.”
Despite Apple having announced a $500 billion investment in the US earlier this year, the fact that it’s due to take place over the next four years is a worrying sign as the tariff troubles continue to loom large.
