Why Trump's iPhone tariff threat might not be enough to bring production to the U.S.

Core Viewpoint - The relationship between President Trump and Apple CEO Tim Cook is deteriorating due to Trump's demand for iPhones sold in the U.S. to be manufactured domestically rather than sourced from India or China [1][2][3]. Group 1: Production and Tariffs - Trump has expressed dissatisfaction with Apple's plan to produce the majority of iPhones in India, insisting that they should be made in the U.S. [2][3]. - A potential 25% tariff on iPhones has been threatened by Trump, which analysts believe would be more manageable for Apple than relocating production to the U.S. [3][4]. - Analysts suggest that absorbing the tariff cost would be more beneficial for Apple than moving assembly lines back to the U.S. [4]. Group 2: Financial Implications - UBS analyst David Vogt indicated that the proposed tariffs would only modestly impact Apple's earnings, estimating a drop of 51 cents per share compared to a previous expectation of 34 cents per share [4]. - Experts have noted that manufacturing iPhones in the U.S. would significantly increase retail prices, with estimates ranging from $1,500 to $3,500, alongside rising labor costs and logistical challenges [5].