Howard Lutnick Says Army Of Millions Will Build iPhones In The US, But Could Trump's Tariffs Make The Premium Apple Flagship Cost $2,300?

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.

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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.

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.

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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.

The automotive industry is also bracing for impact. Analysts say the tariffs could push car prices up by $12,000, potentially slowing down auto sales.

These tariffs — including a 25% duty on imports from Mexico and most Canadian goods (excluding energy products) — are part of a wider trade strategy that could carry serious consequences for both American businesses and consumers.

Price Action: Apple shares have fallen 22.75% year-to-date, ending Friday's session at $188.38, according to Benzinga Pro data.

Photo: Joshua Sukoff/Shutterstock

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.