Trump trade advisor Peter Navarro calls it "inconceivable" that Apple can't produce iPhones outside China

[midian182]

A hot potato: Apple doesn't appear to be in a rush to move out of China, despite Donald Trump's repeated threats about what will happen if it doesn't shift iPhone manufacturing to the US. White House trade advisor Peter Navarro publicly complained about the situation this week, calling it "the longest-running soap opera in Silicon Valley."

"Going back to the first Trump term, Tim Cook has continually asked for more time in order to move his factories out of China," Navarro said during an interview on CNBC's Squawk on the Street.

"And my problem with Tim Cook is he never takes the steps to actually do that."

The trade advisor said that with new advanced manufacturing techniques and "the way things are moving with AI and things like that," it's "inconceivable" that Apple cannot produce iPhones outside of China and in the US.

Since taking office for a second time, Trump has put more pressure on Apple to embrace domestic production.

While Apple has moved some iPhone production out of China, it has shifted the process to India instead, mostly to avoid the Trump tariffs. As such, there have been more US-bound iPhone shipments originating from India than China in the last few months. It was also reported that Apple was preparing to move all assembly of iPhones destined for the US market from China to India by the end of 2026.

But the President wants iPhone production in the US, not India, and he said so in May. Trump appeared to have run out of patience a few days later when he gave Apple an ultimatum: build iPhones in Apple's home country or pay a tariff of at least 25% on its handsets made outside of the US.

Related reading: Trump's dream of a US-made iPhone clashes with Apple's manufacturing reality

Apple said in February that it would invest $500 billion in US manufacturing, including building a new advanced manufacturing facility in Houston that will produce servers previously produced outside of the US.

A 100% US-made iPhone, however, is a much more difficult – if not impossible – task. The latest iPhones consist of around 2,700 different parts, and Apple uses 187 suppliers in 28 countries. China makes most of these components – only 30 Apple suppliers operate entirely outside of the Asian nation.

When it comes to assembly, Apple ships the equivalent of 438 iPhones every minute. 85% of these are assembled by Foxconn, which has dozens of locations in China.

In April, US secretary of commerce Howard Lutnick said that the "army of millions and millions of people screwing in little, little screws to make iPhones, that kind of thing is going to come to America." How many Americans would want to take sweatshop-style manufacturing jobs that can be hard, monotonous, and depressing is another question.

Lutnick: "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."

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– Aaron Rupar (@atrupar.com) 6 April 2025 at 15:52

The last in what is a long list of problems is how much a US-made iPhone would cost consumers. The extra manufacturing and labor costs could push it as high as $3,500, according to some estimates.

Some believe Apple's compromise would be to limit US iPhone manufacturing to the final assembly process, but building an assembly factory and hiring skilled workers would take years and might still not appease Trump.

image credit: Yue Iris

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Trump trade advisor Peter Navarro calls it "inconceivable" that Apple can't produce iPhones outside China

 

[Anton Longshot]

I don't know in which world/reality these people live but it definitely isn't thís one.

 

[GeoffreyA]

The folk at the White House seem to be lacking in the grey-matter department.

 

[gdavid65]

So not surprisingly, a bunch of non-technologists have no ****ing clue how the world operates, yet want to dictate how it operates.

 

[Theinsanegamer]

Well they figured out how to make them in India, so why is it impossible in America? The poor multi trillion dollar corpo can't figure out how to source screws without slave labor?

 

[Rudyduu]

Do they think there are modern factories sitting idle with experienced worker waiting for work to come in? Factories cost money, filling those factories with equipment costs money, developing a supply chain costs money and takes time, training workers with no history of manufacturing takes a lot of time and a lot of money.

Manufacturing isn't going to be brought back to the US by charging companies more to do business with tariffs. The US government would have to use tax dollars to subsidize factory construction and manufacturing still wouldn't start for years after the outside of the factory was completed. There is no easy or cheap fix for American manufacturing.

 

[Theinsanegamer]

Do they think there are modern factories sitting idle with experienced worker waiting for work to come in? Factories cost money, filling those factories with equipment costs money, developing a supply chain costs money and takes time, training workers with no history of manufacturing takes a lot of time and a lot of money.

Manufacturing isn't going to be brought back to the US by charging companies more to do business with tariffs. The US government would have to use tax dollars to subsidize factory construction and manufacturing still wouldn't start for years after the outside of the factory was completed. There is no easy or cheap fix for American manufacturing.

Devils advocate, why should the taxpayer subsidize the production of some of the most expensive smartphones on the market made by one of the richest corporations on planet earth?

You don't HAVE to subsidize production to change behavior. Look at India. They placed a high tariffs on computer products like iPhones not made in country. Result? Apple built a factory in country.

So why can't America do this?

 

[Kirby1]

Devils advocate, why should the taxpayer subsidize the production of some of the most expensive smartphones on the market made by one of the richest corporations on planet earth?

You don't HAVE to subsidize production to change behavior. Look at India. They placed a high tariffs on computer products like iPhones not made in country. Result? Apple built a factory in country.

So why can't America do this?

American labor is the most expensive in the world, that's why. Americans don't want to do this kind of work, and our economy isn't structured well for it.

 

[lonetac]

Devils advocate, why should the taxpayer subsidize the production of some of the most expensive smartphones on the market made by one of the richest corporations on planet earth?

You don't HAVE to subsidize production to change behavior. Look at India. They placed a high tariffs on computer products like iPhones not made in country. Result? Apple built a factory in country.

So why can't America do this?

I mean, we are subsidizing a billionaires failed electric car company, his pet spaceship project, billions in subsidies to large corporations like wal mart, banks, oil industry, the list goes on and on...

Seems to be how we spend our tax money instead of something that benefits the citizens.

 

[wiyosaya]

Seems to be how we spend our tax money instead of something that benefits the citizens.

IMO, part of it, too, is the citizens believing the current admin GAS about them. They don't. The new "Big, Beautiful, Bill" is structured so that it makes it look like at least parts of it are doing something meaningful for the average citizen. Anyone with half a functioning brain cell, which counts out the supporters of the current Admin,IMO, should be able to see that the parts that appear to benefit them really don't or are set to expire after the midterms. Basically, the BBB is playing on the ignorance of its supporters among the average citizens to cement their position in the current government.

Government has had many years to rectify this situation, instead, legislation continually passes that supports off-shoring of manufacturing - and then everyone wonders why manufacturing has left the US for greener pastures elsewhere.

And the current admin is expert at blaming everyone else and doing nothing meaningful about the situation - further playing on the ignorance of their supporters.

 

[Theinsanegamer]

American labor is the most expensive in the world, that's why. Americans don't want to do this kind of work, and our economy isn't structured well for it.

America is also the largest consumer market in the world, 1 of every 4$ spent worldwide comes from the US. Apple is mega wealthy, the wages of factory workers would be a drop in the bucket of sales.

Also, in the heyday of America, America ALSO had some of the highest wages in the world. So it didn't stop production before. Almost like paying people living wages is something companies gaslight about to keep their margins high.

I don't buy that "our economy isn't structured well for it". If they can make it work in India, it's not an issue of sourcing things, as apple claims.

I mean, we are subsidizing a billionaires failed electric car company, his pet spaceship project, billions in subsidies to large corporations like wal mart, banks, oil industry, the list goes on and on...

Seems to be how we spend our tax money instead of something that benefits the citizens.

Two wrongs don't make a right. Many ask why we subsidize those too you know.

 

[wiyosaya]

Many ask why we subsidize those too you know.

IMO, those who don't think that government should subsidize citizens are those that don't need it and those that eschew having any of their "pot of gold" used for anything other than for which they think it should be used. They want total control and think that they have the right to tell everyone else how to live while engaging in hypocrisy.

So are you saying that government should not exist? Clearly, no civilization in the history of the world has figured out how to make that work.

As I see it, it is the duty of government to improve life for the citizens that it governs. Obviously, it is impossible to please everyone, and as I see it, that is why the US government exists in the form that it does today - everyone gets a vote.

Unfortunately, Greed has often gotten in the way, no matter what side of the aisle anyone is on, of achieving that ideal, and greed will continue to get in the way of that ideal - especially if the leaders of government don't GAS about anything except themselves - which is yet another form of greed.

And, IMO, that's at least part of the reason the US is continually stuck in a mire of muck and turds hitting the fan.

 

[Megalomaniac]

Apple needs to simply hold out for just 3 and a half years till Trump is gone.

 

[VaRmeNsI]

Decades of liberalism has robbed the West of its technical edge.

 

[Theinsanegamer]

IMO, those who don't think that government should subsidize citizens are those that don't need it and those that eschew having any of their "pot of gold" used for anything other than for which they think it should be used. They want total control and think that they have the right to tell everyone else how to live while engaging in hypocrisy.

So are you saying that government should not exist? Clearly, no civilization in the history of the world has figured out how to make that work.

As I see it, it is the duty of government to improve life for the citizens that it governs. Obviously, it is impossible to please everyone, and as I see it, that is why the US government exists in the form that it does today - everyone gets a vote.

Unfortunately, Greed has often gotten in the way, no matter what side of the aisle anyone is on, of achieving that ideal, and greed will continue to get in the way of that ideal - especially if the leaders of government don't GAS about anything except themselves - which is yet another form of greed.

And, IMO, that's at least part of the reason the US is continually stuck in a mire of muck and turds hitting the fan.

I never said the government should not exist. I said the government shouldn't subsidize a factory for a multi trillion dollar corporation that has no issues building new factories in other countries.

You took that statement then ran way off left field with it.

 

[Kirby1]

America is also the largest consumer market in the world, 1 of every 4$ spent worldwide comes from the US. Apple is mega wealthy, the wages of factory workers would be a drop in the bucket of sales.

Also, in the heyday of America, America ALSO had some of the highest wages in the world. So it didn't stop production before. Almost like paying people living wages is something companies gaslight about to keep their margins high.

I don't buy that "our economy isn't structured well for it". If they can make it work in India, it's not an issue of sourcing things, as apple claims.
Two wrongs don't make a right. Many ask why we subsidize those too you know.

You're way too far away from understanding this for me to even attempt to explain it to you.

 

[lonetac]

I never said the government should not exist. I said the government shouldn't subsidize a factory for a multi trillion dollar corporation that has no issues building new factories in other countries.

You took that statement then ran way off left field with it.

Thats fair, I can see that in your statement.

I dont think the government should be subsidizing any profitable corporation let alone ones putting out billions in profit. I wasnt defending Apple, just pointing out that this seems to be how the USA works. I actually agree with you for a change

The money should come back to the tax payers, not rich corporations and billionaires. Citizens United needs to gtf out of politics.

I think you (I hope), me and Wiyosaya actually are all on the same page based on what I just read concerning this topic.

 

[n3o127]

We are becoming a Nation of people that live by thoughts such as we can't do it, it's too hard, we don't want to, we prefer low wage (poorly treated) workers make our stuff for us, we aren't smart enough, so many excuses with little to no drive to improve. Better to divide, disagree, and say no I guess vs anything else.

 

[Kirby1]

It's not like the US couldn't manufacture an iPhone. The question is, could apple make phones the in the US and still make a profit? Maybe they could, but the profit would definitely be a lot lower and iPhone would cost a lot more.

Apple is a for profit business.

 

[DrSuess]

Its only inconceivable to someone that doesn't have a clue to how Apple's supply chain works. Almost all of Apple's supply chain exist outside of the US and isn't moving to the US. So if iPhones were to be built in the US, they could only be assembled in the US which means each part would need to be imported from countries that have tariffs so now the iPhone would be significantly more expensive. Importing an iPhone with a tariff is still more cost effective than assembling one in the US.

 

[lonetac]

It's not like the US couldn't manufacture an iPhone. The question is, could apple make phones the in the US and still make a profit? Maybe they could, but the profit would definitely be a lot lower and iPhone would cost a lot more.

Apple is a for profit business.

Exactly.

A lot of folks say that the US drove manufacturing out which isnt true.

CEO's took their manufacturing to other countries for more profit. They will continue to produce where they can make the most profit.

The only way it would come back here is if it was a viable profit margin which would mean tariffs would need to exceed the amount that they save by exploiting countries labor outside the USA.


If you look at the three historical examples of tariffs being used in this method, its failed every time. A lot to be learned from history...

 

[ScottSoapbox]

Devils advocate, why should the taxpayer subsidize the production of some of the most expensive smartphones on the market made by one of the richest corporations on planet earth?

You don't HAVE to subsidize production to change behavior. Look at India. They placed a high tariffs on computer products like iPhones not made in country. Result? Apple built a factory in country.

So why can't America do this?

America can do this.

The problem is that the tariffs would need to make iPhones cost $4000 to buy in the US so that spending billions to build factories and train workers make them here and sell them for $3500 makes financial sense.

The downside would obviously be the much higher prices all US consumers would pay forever so that one town in the US could have "good manufacturing jobs" again.

 

[AlexIL]

So not surprisingly, a bunch of non-technologists have no ****ing clue how the world operates, yet want to dictate how it operates.

So far a bunch of technologists got us to this point. Can't say we are thrilled.

 

[Xelions]

Wtf is it with all these noob posts in history and economics.

1. Sweat shop workers ain't happening in America again

2. You can't reverse globalisation faster than a nuns first curry... So get your head out of your arse and stop thinking you can manufacture an iPhone and all it's components in 1x place. - and if you wanna understand this better read and learn about electronic components instead of posting bullsh$$!

3. You wanna bring manufacturing back to the US like they wanna bring back to OZ - stop foreign ownership of companies! Make better product than what is imported. Don't start with complex products until you have manufactured simple products. That's it. Simples!

Eg. Simple+Simple+Simple+Simple=Complex!

 

[GodisanAtheist]

Are you also excited about the girl that only has 1 doll having 0 dolls and also less food ?

It's always fun to focus on the rich getting screwed -which never actually happens because of wealth and power- when the reality is the poor getting screwed.

Tariffs, taxes, and inflation annoy (or even help) the rich while crushing the poor.

You'll notice the execs aren't getting laid off and the rich aren't worried about rising housing prices (it actually makes them richer since they already own much property). It's the middle class and the working class losing the American dream.

- Yes, let's Make America Great Again by getting wealth back into the hands of monopolists and billionaires the way God and the founding father's intended.