On July 6, 2025, White House trade advisor Peter Navarro criticized Apple CEO Tim Cook, saying that the company has not moved quickly enough to reduce its reliance on China for manufacturing.

Navarro made these comments during an interview on CNBC’s “Squawk on the Street.”

Navarro claimed that Cook has consistently requested more time to shift Apple’s production out of China since the Trump administration’s first term.

He referred to this ongoing situation as “the longest-running soap opera in Silicon Valley.”

Apple’s flagship iPhone is mainly produced in China, though the company has increased production in India in recent years.

This shift has been partly due to avoiding additional tariffs imposed during the Trump administration, which included a potential 25% levy on products made outside the US.

Navarro argued that advancements in manufacturing and AI should allow Apple to produce iPhones in other countries, including the US.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ The complex economics of reshoring electronics manufacturing

Apple’s manufacturing decisions illustrate the significant economic challenges of returning high-volume electronics production to the U.S.

Multiple analyst reports estimate that producing iPhones domestically would increase costs by up to 90%, potentially raising consumer prices to US$2,300-US$3,500 per device 123.

The manufacturing ecosystem Apple relies on is massive and primarily Asia-based. Foxconn alone employs approximately 250,000 people globally and generated US$152 billion in revenue in 2018 4.

Reshoring doesn’t just involve final assembly but reconstructing entire supply chains, which experts suggest would take 5-10 years even with substantial investment 1.

The US faces structural challenges in electronics manufacturing, including an aging workforce and younger generations showing less interest in factory jobs, creating labor supply constraints 5.

2️⃣ Apple’s measured supply chain diversification strategy