In March 2025, President Donald Trump’s administration announced a new round of tariffs—this time, a 25% fee on imported aluminum and steel, regardless of their country of origin. While the immediate effect of these tariffs is expected to be significant in industries reliant on raw materials, many are questioning whether it will lead to a shift in how products like the iPhone are made. Specifically, would these tariffs spark the production of an “All-American iPhone”?
The short answer is no. While metals like aluminum are indeed essential for building products like smartphones, these tariffs don’t directly impact the pricing of finished goods like the iPhone. To understand why, we need to examine the global nature of Apple’s supply chain, the way tariffs affect raw materials versus finished goods, and the economic realities of domestic manufacturing.
The Nature of Trump's Metal Tariffs
The U.S. government’s decision to impose a 25% tariff on imported aluminum and steel is part of an ongoing effort to protect American industries from foreign competition. However, it’s crucial to understand that these tariffs target raw materials, not finished products. So, when Apple imports aluminum or steel components for its devices, it’s usually importing finished or processed components rather than raw metal.
Neil Shah, Vice President of Research at Counterpoint Research, explains, “The tariffs only impact raw materials; finished goods that arrive at U.S. ports are exempt from the tariff.” In the case of Apple and other electronics companies, most of the components that end up in consumer products like the iPhone are already processed, negating the impact of the tariff.
Apple’s Global Supply Chain and Production
Apple’s iPhones are assembled in China, with millions of units being manufactured by Foxconn in factories located in Shenzhen and Zhengzhou. While there has been significant talk about reshoring production to the U.S., most of the iPhone’s intricate components, from the A18 chip to the camera sensors, come from various countries around the world. The aluminum casing used in the iPhone, for instance, is sourced from suppliers in China, Taiwan, Japan, and South Korea.
Interestingly, the bulk of the materials used in iPhones—particularly metals like aluminum—are processed and shaped before they even enter the U.S. According to Apple’s supply chain disclosures, eight out of the 13 companies that supply metals to Apple are based in China. By the time these materials are imported into the U.S., they are no longer in raw form, meaning that Trump’s new tariff on raw metals has little effect on the price of finished products.
The Real Impact of Tariffs on Consumer Electronics
While the new aluminum and steel tariffs may not directly affect the iPhone’s price, the 10% tariffs on Chinese goods imposed earlier are a different story. These tariffs target finished products, including smartphones. Around 80% of the world’s smartphones, including the iPhone, are produced in China. The cost of these tariffs is typically passed onto consumers in the form of higher prices.
The Consumer Technology Association (CTA) has been vocal about the negative impact of these tariffs on American consumers. Gary Shapiro, the CEO of CTA, points out, “Tariffs are taxes on American consumers, not foreign governments or companies.” With smartphones being one of the most impacted sectors, it’s expected that U.S. consumers may see a rise in prices—though the exact extent remains uncertain. According to analysts, Apple might absorb some of these costs to prevent drastic price hikes, but even a 10% price increase could be problematic for consumers.
Could Tariffs Lead to an All-American iPhone?
President Trump’s rhetoric around the tariffs has largely focused on bringing manufacturing jobs back to the United States. The hope was that imposing tariffs on imported materials and products would encourage companies like Apple to reshore production. However, the idea of the “All-American iPhone” is far more complicated than just increasing tariffs on foreign-made goods.
Manufacturing an iPhone is a global effort. The iPhone’s most complex components, like the A18 chip, are produced by companies like TSMC in Taiwan. The camera sensors are made by Sony Semiconductor Solutions Group in Japan, while other components come from places like South Korea and Germany. Even if Apple were to open a full-fledged assembly plant in the U.S., the highly specialized components still need to come from countries with the necessary infrastructure and expertise—something the U.S. currently lacks in many areas.
Apple has already made some strides in bringing certain aspects of its production to the U.S. In 2024, TSMC began production of Apple’s A16 chips in Arizona. However, there’s a catch: the latest chips—produced using 2nm architecture—cannot be made in the U.S. as Taiwan has banned the export of this technology. While there’s a possibility that Apple could use Intel’s U.S.-produced chips in future iPhones, it would take significant investment and time before this could become a reality.
Even then, the cost of labor and resources in the U.S. would likely make iPhones much more expensive if produced entirely within the country. As noted earlier, consumers are unlikely to pay the premium that would result from this shift. Therefore, while the push for domestic production is a noble idea, the reality is that a fully American-made iPhone remains a distant dream—if it is even possible at all.
Trump’s metal tariffs will not lead to the creation of an "All-American iPhone." While they may cause short-term disruptions in global supply chains, especially for industries reliant on raw materials, the iPhone and other consumer electronics are intricately tied to a global supply chain that can’t be easily shifted.
The tariffs on aluminum and steel will not affect the final price of your next iPhone directly. However, other factors—such as the ongoing 10% tariffs on Chinese goods—could cause an uptick in smartphone prices, potentially impacting U.S. consumers. Furthermore, reshoring manufacturing to the U.S. would require overcoming significant economic and infrastructural barriers, making it unlikely that we will see entirely domestic iPhone production in the near future.
In the end, while the tariffs will certainly have ripple effects on the tech industry, the dream of a fully American-made iPhone remains elusive, with the global nature of tech manufacturing making it impossible to isolate from the complexities of international trade.
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