President Donald Trump has threatened to impose a tariff of 25% or extra on Apple (AAPL) iPhones made internationally. Wedbush analyst Dan Ives of Wedbush says there’s “no likelihood” the corporate shifts iPhone manufacturing to the U.S.

Trump on Friday warned Apple that the White Home would impose a tariff of no less than 25% on iPhones made outdoors the U.S.—together with in India, the place the corporate has moved extra of its manufacturing amid larger tariffs on China—and bought right here. Apple didn’t instantly reply to Investopedia’s request for remark.

The idea «of Apple producing iPhones within the US is a fairy story that isn’t possible,” Ives wrote Friday. Wedbush estimates that American-made iPhones would cost $3,500, whereas the iPhone 16 currently starts at $799 and the iPhone 16 Professional sells for $999.

“We see no likelihood that iPhone manufacturing begins to occur within the U.S. within the near-term given the the other way up price mannequin and Herculean-like provide chain logistics wanted,” Ives stated.

“I’ve way back informed Tim Cook of Apple that I anticipate their iPhone’s that shall be bought in the USA of America shall be manufactured and in-built the USA, not India, or anyplace else,” the president stated in a put up on his Reality Social platform. “If that isn’t the case, a Tariff of no less than 25% should be paid by Apple to the U.S.»

JP Morgan analysts on Friday stated such a tariff would seemingly have to cowl smartphones broadly, quite than particularly goal Apple. Additionally they steered {that a} 5% world improve in iPhone costs would possibly assist the corporate mitigate the consequences of 25% tariffs on gadgets bought within the U.S.

Citi analysts estimate {that a} 25% tariff on iPhones, which make up about two-thirds of Apple merchandise bought within the U.S., would decrease the corporate’s earnings per share by greater than 4% in fiscal 2026 and 2027. The financial institution estimates that Apple would move one-third of upper incremental prices onto its prospects and suppliers. 

Shares of Apple slid almost 3% in latest buying and selling Friday. The inventory is down 21% in 2025 to this point.