Apple struggles to keep iPhone production in the U.S. amid mounting tariffs

As of April 2025, Apple faces significant challenges due to ongoing tariffs imposed by the U.S. on China, which have impacted the company's supply chain and stock value. Apple has committed to spending $500 billion in the U.S. by 2028, but this investment does not include plans to manufacture iPhones domestically. Analysts predict shifting production to the U.S. would result in costs tripling for iPhones, thus endangering the product's market viability. Furthermore, Apple has recently seen a drop in its stock price by 15% and a loss of $500 billion in market value since the initiation of higher tariffs, with consumers anticipating eventual price hikes for their products. Despite these economic pressures, Apple can absorb some tariff-related costs through strong revenue from its service sector, which remains unaffected by tariffs, but production is unlikely to shift significantly to the U.S. in the immediate future, according to industry experts who cite a lack of skilled labor in the U.S. that matches China's production capabilities. Such circumstances emphasize the complexity of reshaping Apple's production model amidst political and economic tensions.