Trump to Apple: Build the iPhone in America or Face a 25% Tariff
The phone would be way more expensive if built in America compared to a 25% tariff.
President Donald Trump told Apple CEO Tim Cook to build the iPhone in America or face tariffs:
I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter!
You know what? I bet it would be cheaper for consumers to pay the tariff. It is expensive to manufacture in America because we have too much red tape and regulations, plus people demanding at least $15 an hour.
I’d tell Cook to take the tariff.
Look, it would be great to manufacture everything in America, but come on. You have to cut through the red tape and regulations. Those costs would make the iPhone even more expensive.
Anyway, Trump did a U-turn on Cook, who decided to move more manufacturing to India out of China because the former has a better trading relationship with America.
Last week, Trump relayed a conversation he had with Cook:
“I had a little problem with Tim Cook yesterday,” Trump said. “I said to him, ‘my friend, I treated you very good. You’re coming here with $500 billion, but now I hear you’re building all over India.’ I don’t want you building in India.”
Trump was referencing Apple’s commitment of a $500 billion investment in the U.S. which was announced in February.
Apple has been ramping up production in India with the aim of making around 25% of global iPhones in the country in the next few years, as it looks to reduce reliance on China, where around 90% of its flagship smartphone is currently assembled.
“I said to Tim, I said, ‘Tim look, we treated you really good, we put up with all the plants that you build in China for years, now you got build us. We’re not interested in you building in India, India can take care of themselves … we want you to build here,’” Trump said.
Well, here’s one reason why the phone would be more expensive if Apple built it in America. Those millions of people would demand at least $15 an hour.
A reminder that Trump's commerce secretary said this about the impact of tariffs:
"The army of millions and millions of human beings screwing in little screws to make iPhones — that kind of thing is going to come to America." https://t.co/jyeHlUBLd1
— Olivier Knox (@OKnox) May 23, 2025
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Comments
You don’t need people to screw in tiny screws any more than you need them to solder components into motherboards anymore. It’s all automatable.
Or better yet, forget the screws and just weld the stuff together. It’s not as if independent shops can repair their computers anymore, and iPhones are not far behind that curve. Just have Apple ship them to Houston, like they do everything else that needs fixing.
“ Those millions of people would demand at least $15 an hour…”
Demand? I don’t know about all of you but I don’t demand anything from my employer. I might ask, I might persuade but I never demand because that’s a fantastic way to get fired.
I might have to go back and watch a YouTube of an iPhone factory but I’m guessing that you can automate 90+% of its assembly. Put the plant in South Carolina out of the reach of labor unions and I’m pretty sure Tim Cook could make this work.
The ideal would be to build them in Central America.
Then there would be good jobs for the locals and they would not need to migrate here to get a job.
It may be that making the phones in a developing country like India will have to do. Better than in China. This threat against Cook is out of line.
I really don’t understand the argument that we must rely upon cheap foreign labor. Individuals wear several ‘hats’ only one ow which is the ‘consumer hat’. How about their taxpayer hat? US Citizen hat? Worker hat? Kinda tough to be a consumer of products without being a worker with a job earning wages to pay for products.
So what if the next IPhone is priced higher due to US manufacturing? The workers employed there will have wages to buy them (see Henry Ford on this point). Don’t ignore the ripple effects on the larger economy when these workers at US based Apple manufacturing buy a home, rent apartments (that’s gonna mean new construction and jobs from that), buy a vehicle to get to work (auto sector jobs), buy lunch/fuel/snacks and the jobs those increases in economic activity bring. Then there’s potential Nat Security issues and potential supply chain disruption issues stemming from a reliance on foreign manufacturing, both avoided with US manufacturing.
You make an excellent point. The cheapest possible prices for goods (often due to slave labor or the next thing to it) are not necessarily the highest good OR the thing that brings prosperity to our working class.
The parasite class is the one that benefits most from low prices due to cheap foreign labor, because the profit margins involved in low foreign manufacturing costs versus high selling prices are astounding..
How much of the cost of an Apple phone or a pair of Nikes is related to the actual manufacturing costs? Damn little.
Foxconn’s gross margin is about 6% and its operating margin is about 2% (so 4% is labor and overhead).
Apple’s operating income is 25%.
We don’t need to be building Foxconns here we need more Apples.
What we should be doing is incentivizing domestic production and processing of critical components/materials – semiconductors, battery materials, drug components, rare earth elements, drone components etc.
We don’t need to be making commodities here when others do it better, faster and cheaper.
This is pure government overreach. If it were done by a D we would all be howling so be consistent in condemning it.
depends
eliminating regs..winner
“others do it better faster cheaper”
regs/unions…we lost b/c of the reg/unions
I consistently place the security and economic well being of the broad middle-class, the 70% between the bottom 15% and the top 15% as the priority for our National policies.
Might be handy have the ability to produce ‘commodities’ in the event of an intentional supply chain interruption or due to conflict with a hostile Nation. Making ourselves dependent upon foreign Nations for basic things is insane. We don’t even make flipping aspirin or Motrin in the USA.
I fail to.see.how desiring more domestic US production and the accompanying good paying, high benefit manufacturing jobs are ‘bad’ for the USA. Sure the current set of winners would be hit: the top 15% who accrued 75% + of economic gains under the globalist framework and the bottom 15% they paid off with welfare would do worse but the broad middle-class that comprise 70% of the Nation would prosper.
Companies that have 3-4% operating margins aren’t worth having they are bad businesses. So the iPhone supply chain gets interrupted. Who cares? Apple will learn to diversify its manufacturing base.
The president targeting one company is gross over reach and just not worth the damage it does when there are so many more important things that need to be accomplished.
By your standard declaring an enterprise with 3% or less profit margin as ‘not worth having’ you eliminate:
1. Grocery Stores
2. Building supply stores
3. Auto dealerships
4. Lawn, garden stores
5. Furniture/home furnishing stores
If we just look at revenues on fuel purchases then that would eliminate most gas stations.
I could care less about Apple. If they want to be a US company they should build in the USA and employ US workers. Otherwise remove them from our financial market listings, curtail access to US financial capital markets and put a tariff on them. Consumers can find an alternative to substitute or go without as we did for generations.
Operating margin:
Only grocery stores operate at such low margin. eg Home Depot’s operating margin is >15%. Builder’s FIrst Source is >10%. Most car dealerships are >6%.
Grocery is a local necessity, making iPhones is not. Further, grocery margins have been driven down by the cost obsessed 800 lb gorilla in all retail… Walmart.
> Apple tried a totally domestic production of a flagship product back in 1980 with the Apple /// computer – building a state-of-the-then-art automated manufacturing plant – but famously harmed its brand because of problems with the robot chip handlers inserting the chips ALMOST perfectly – well enuf to pass random testing at the plant but not sufficiently seated to stay put with repeated on / off heating / cooling cycles.
> By some estimates a base iPhone 16 currently costs Apple about $400 to manufacture – half of its $800 price tag.
> By some estimates labor costs in the US would add about $200 per iPhone to the manufacturing costs if Apple made iPhones in the US.
> While Apple smart phones certainly have a reputation for being much more expensive than the competition – and DO have a higher markup (from the manufacturing costs) – Apple also spend much more than most of the competition on R&D – which protects its reputation as a “premium” brand and justifies (in many consumer’s minds) the pricing.
> This is reflected in the incredible stat that in the youngest demographic of US purchasers 50% prefer buying an iPhone.
> Global (non US) iPhone sales are more than 50% of Apple’s iPhone sales.
> To meet Trump’s demand re: US manufacturing Apple would have to either build that many iPhones entirely domestically or – taking a tip from car manufacturing – ALMOST build iPhones worldwide but slap a made in the US sticker on them by moving final assembly back here.
> Trump is a negotiator – Apple may be able to avoid targeted tariffs by such half measures,
“ Well, here’s one reason why the phone would be more expensive if Apple built it in America. Those millions of people would demand at least $15 an hour.”
There is more to it than just paying someone a minimum wage.
There are all the economic benefits the country will receive with more people working because local economies benefit directly from the increased flow of money in the local economy and the national economy benefits from all that extra economic activity all across the country.
Another benefit is less people being reliant on the state because they can support themselves.
Another benefit is less people being reliant on the state because they can support themselves.
except those people wont look to hire on
stop the welfare and then they might
25% tax on Apple products while singling out the CEO by name for retribution, 50% tax on European goods, expulsion of foreign students, bill passed with most debt in history, while hosting a dinner for people who gave you $300+ million. All in the last 24 hours.
The Golden Age.
GUFFAW!