In This Article:
On Saturday, Commerce Secretary Howard Lutnick said that Apple Inc.'s (NASDAQ:AAPL) iPhones could soon be made in the U.S. as part of President Donald Trump's push to bring manufacturing back to American soil.
What Happened: In an appearance on CBS's Face the Nation, Lutnick said that Trump's tariffs would incentivize companies to move their production to the U.S., reducing reliance on overseas factories.
"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," Lutnick said.
Don’t Miss:
-
‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.26/share with a $1000 minimum.
-
Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share.
However, he also indicated that while manufacturing in the U.S. could lead to job growth in certain sectors, it might not create the large number of jobs expected due to increasing automation.
Why It's Important: Trump's tariffs are creating significant uncertainty for American consumers, especially those in the tech sector. As the tariffs target key imports such as electronics, the cost of consumer goods like iPhones, which rely heavily on foreign production, is expected to rise.
Previously, analysts predicted a steep price increase for iPhones due to the tariffs, particularly a 54% tariff on goods imported from China, where most iPhones are made.
See Also: How do billionaires pay less in income tax than you? Tax deferring is their number one strategy.
Industry experts have suggested that if Apple passes these costs onto consumers, the price of an iPhone 16 Pro Max could rise by 43%, pushing the price from its current $1,599 to as high as $2,300.
Former Treasury Secretary Larry Summers slammed the tariffs as one of the most expensive and self-defeating moves by the U.S., warning they could cost the economy up to $30 trillion — roughly $300,000 per household.