Trump Threatens to Impose 25% Tariff on Imported iPhones

President Donald Trump’s effort to move iPhone production to the United States is hit with huge legal and economic stumbling blocks, experts say. President Trump has threatened to place a 25% tariff on Apple for any iPhones purchased in America that are not produced in America, as part of his general plans to reshore manufacturing employment.

Commerce Secretary Howard Lutnick had earlier indicated that making iPhones in the U.S. would mean automating the task of putting tiny screws together, which is being done by hand now. According to him, “millions and millions of human beings screwing in little screws” would be substituted with automation, which would create skilled work for mechanics and electricians. But Lutnick subsequently accepted that Apple CEO Tim Cook suggested the technology for such automation—robotic arms to carry out precise, large-scale assembly—was not yet developed.

Legal scholars observe that the imposition of tariffs particularly on Apple would be complex. The main legal vehicle the Trump administration could utilize is the International Emergency Economic Powers Act (IEEPA), which enables the president to apply economic sanctions during a declared emergency posing a threat to the U.S. However, there is no specific authority in the law for company-specific tariffs. Some commentators believe the administration can try to justify them by declaring an emergency under IEEPA, but this path is legally problematic.

Trade attorneys caution that tariffs on just Apple would skew competition, allowing other smartphone producers an unfair benefit and undermining Trump’s objective of encouraging U.S. manufacturing. Specialists further note that the legal foundation for company-specific tariffs is questionable, with pending court cases questioning the application of IEEPA for sweeping tariffs.

In addition, transferring the iPhone manufacturing to the United States could take almost a decade, and its cost may skyrocket. Experts estimate that a U.S.-made iPhone would cost up to $3,500—well beyond the current retail price of up to $1,200 or so for the top-of-the-line models—rendering such steps economically prohibitive.

Economists caution that tariffs and supply chain disruptions would raise costs to consumers and make the manufacturing processes more difficult for Apple, in the end hurting American consumers. “None of this is good for consumers,” Columbia economics professor Brett House said.

All in all, whereas President Trump seeks to bring back U.S. manufacturing using tariffs and policy actions, experts point to substantial economic and legal challenges that may hinder the achievement of such objectives.