If the iPhone were made entirely in the US, it would cost up to $3,500

US President Donald Trump promised that tariffs on goods from around the world would help quickly revive manufacturing in the US. In fact, experts predict that the country will see a sharp jump in prices for everything from clothing to electronics. And the Apple iPhone, if it is produced entirely in the US, will rise in price to $3,500.

This scenario was predicted by Dan Ives, one of the heads of the financial company Wedbush Securities. The more than threefold increase in the price of the iPhone, which already costs about $1,000, will arise due to the need to reproduce in the United States the complex production ecosystem that was formed in Asia. In order to move at least 10% of its supply chain to the United States, Apple will have to spend about $30 billion and three years.

Smartphone component manufacturing and assembly moved to Asia decades ago, while American companies moved into product design and software development because they were more profitable. As a result, Apple became one of the most valuable companies in the world and dominated the smartphone market. But since Trump’s inauguration, Apple’s shares have lost about 25% of their value as investors worried about how Trump’s tariffs would affect its supply chain, which is heavily dependent on China and Taiwan.

The chips that power iPhones are mostly made in Taiwan, the screen panels come from South Korean companies, and many other components are made in China, where 90 percent of iPhones are assembled. In February, Apple pledged to invest $500 billion in American manufacturing over the next four years, part of its strategy to expand manufacturing outside China to avoid the impact of tariffs.

Now, tech analysts agree that the iPhone will become more expensive even if nothing changes in the supply chain — the price increase will be between 30% and 43%, depending on where production is deployed. Earlier, Apple began working to diversify smartphone production and move it to India and Brazil. As a result, tariffs of 104% apply to China, 26% to India, and 10% to Brazil. But Brazil’s capacity is likely not enough to fill the gap left by China.