Apple analyst Ming-Chi Kuo shared a statement on the recent threat from the US government regarding a potential 25% tariff on iPhones. Here’s what Apple might do in response to the situation.
After the US tariff war with China, Apple has once again found itself in a challenging position concerning its iPhone manufacturing strategy. Recently, former US President Donald Trump expressed dissatisfaction with Apple’s decision to manufacture iPhones in India for sale in the American market. In simpler terms, Trump urged Apple to bring iPhone manufacturing back to the United States.
To emphasize the seriousness of the matter, Trump has now threatened to impose a 25% tariff on iPhones sold in the US that are manufactured outside the country. This move could place significant financial pressure on the tech giant. If the tariff is officially implemented, Apple may be forced to raise iPhone prices, which could directly impact US consumers.
US Likely to Impose 25% Tariff on iPhones
Apple is currently facing strong disapproval from the US government for assembling and exporting iPhones from India. Last week, Trump made a bold statement:
“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.”Following this declaration, the US government has threatened Apple with a 25% import tariff on all iPhones that are brought into the US from other countries. This decision has sparked a wave of debate, with many opinions surfacing on how this could affect Apple and its customers.
Ming-Chi Kuo Comments on the 25% Tariff Threat
Respected Apple analyst Ming-Chi Kuo shared his thoughts on the matter via an X (formerly Twitter) post, stating:
“In terms of profitability, it’s way better for Apple to take the hit of a 25% tariff on iPhones sold in the US market than to move iPhone assembly lines back to the US.”
Here are a few additional points:
— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) May 23, 2025
1. The specific tariff percentage Trump proposes on iPhones isn’t the main concern. The bigger issue is that this is Trump’s second recent pointed comment targeting Apple—a warning sign Apple can’t ignore.
2. Apple’s top priority in… https://t.co/UjuOkWMJgg
This analysis seems logical considering the fact that Apple still performs most of its manufacturing in China, while it is rapidly expanding its infrastructure in India. Over the years, Apple has built deep relationships with key suppliers such as Foxconn and Pegatron, making a sudden shift to US-based manufacturing both risky and expensive.
Shifting Manufacturing to the US Could Be a Major Challenge about 25% tariff
Relocating Apple’s entire iPhone production to the United States would come with significant logistical and financial hurdles. At present, the US plays a very small role in iPhone assembly. Establishing domestic manufacturing facilities could require multi-billion-dollar investments and extended development timelines.
A recent estimate from Wedbush Securities suggests that moving iPhone production to the US could increase the per-unit cost of an iPhone to approximately $3,500. That’s more than triple the current average retail price. Given these figures, Kuo’s prediction that Apple might opt to bear the tariff cost instead of shifting operations makes practical and financial sense.
What’s Next for Apple and US Consumers?
As of now, it remains to be seen how the situation between Apple and the US government unfolds in the coming weeks. However, if the tariff threat becomes a reality, American consumers could face a significant increase in iPhone prices.
If the US enforces stricter regulations on iPhones manufactured in India or other countries, we could see price hikes within this year or in the near future. For now, all eyes are on how Apple navigates this growing political and economic tension.
The proposed 25% import tariff on iPhones could have wide-reaching consequences for Apple, its manufacturing strategy, and millions of U.S. customers. While the final outcome remains uncertain, the implications are clear: if enforced, iPhones could become more expensive, and Apple may need to rethink how — and where — it builds its best-selling products.
Trump threatens 25% tariff on iPhones | Apple’s India plans unshaken
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