• Trump’s feud with tech moguls like Apple’s Tim Cook could lead to higher iPhone prices due to proposed tariffs. Trump now in war with tech and these tariffs are part of his strategy.
• Apple faces big challenges relocating production to the U.S. because of high costs and lack of skilled workers, as Trump now in war with these tech giants over production decisions.
• Elon Musk’s close ties with Trump have faded as he steps back from politics and criticizes tariff policies. This change came as Trump now in war against former allies in the tech industry.

President Donald Trump has recently entered a major conflict with top tech leaders, including Elon Musk and Apple CEO Tim Cook. Once close allies, Trump’s ties with these billionaires have severely weakened. The fallout began after Musk’s departure from the White House advisory role. Now, Trump openly criticizes Cook and threatens steep tariffs on Apple’s iPhones. These moves mark a sharp shift from past support and could shake the entire tech industry. Prices for iPhones and other Apple products may rise significantly if Trump enforces tariffs on goods made outside the U.S., reinforcing Trump now in war with large tech companies.

Trump Publicly Clashes with Tim Cook Over Manufacturing Moves

During a recent trip to the Middle East, Trump openly expressed frustration with Tim Cook. He criticized Apple for building iPhones in India and warned that he wants all iPhones sold in the U.S. to be made domestically. Trump made this clear during speeches in Qatar and Saudi Arabia. He praised Nvidia’s CEO for traveling with the White House but pointedly noted that Cook was absent. This public snub surprised many because Cook had been viewed as a trusted advisor to Trump. The president followed up with a direct threat on social media, stating he would impose a 25% tariff on Apple products made abroad if the company did not move production back to the U.S. This tariff could also affect other companies like Samsung. Trump aims to begin enforcement by the end of June, causing concern across markets.

Market and Industry React with Alarm Over Possible Tariffs

The announcement caused major turmoil in the stock market. Apple lost $640 billion in market value within days of Trump’s tariff threat. Industry experts warned that shifting production from China and other countries to the U.S. will not be simple or cheap. Over 80% of Apple’s products currently come from China, including most iPads and many Mac computers. Apple has expressed interest in expanding U.S. manufacturing but faces serious hurdles. The U.S. does not have enough skilled workers or engineers to handle the complex assembly that China currently manages efficiently. The company also pointed out that labor costs in the U.S. are much higher, with estimates of about $200 per iPhone versus $40 in China.

Analysts Predict Dramatic Price Hikes if Apple Moves Production

Experts predict that iPhones could become far more expensive if Apple moves production to the U.S. Bank of America analysts estimate that the iPhone 16 Pro Max’s price could nearly double from $1,199 to around $2,300. Other analysts suggest the price could skyrocket even more, reaching up to $3,500 per unit. These price jumps come from higher labor costs and the need to train a workforce for specialized manufacturing tasks. Apple CEO Tim Cook has emphasized the shortage of qualified tooling engineers in the U.S., contrasting it with the large talent pool in China. The cost increase could make Apple products far less affordable for many customers.

Apple Takes Action to Avoid Tariff Impact

To lessen the blow from potential tariffs, Apple quickly moved to ship about 1.5 million iPhones from India to the U.S. by chartering special flights. This strategic move aims to avoid tariffs and keep prices stable before Trump’s proposed rules take effect. Apple is clearly working hard to protect its business from Trump’s escalating demands. However, the long-term challenge of relocating manufacturing remains daunting. It will require huge investments and time to rebuild production infrastructure inside the United States.

Elon Musk’s Falling Out with Trump and Shift Away from Politics

Elon Musk, who once enjoyed close ties with Trump, has also fallen out with the president. Musk publicly criticized Trump’s tariff policies, calling for “zero tariffs” between key nations. Musk’s business suffered heavily after tariffs triggered a market crash, costing him billions. His political influence in Washington has sharply declined. At the Qatar Economic Forum, Musk said he plans to reduce his political spending significantly. He joked that he had “done enough” politically, signaling a retreat from his previous activism. Although Musk might still engage in some political races, insiders say he won’t put on big rallies or spend as aggressively as before.

Trump’s Social Media Silence on Musk and Cooling Relationship

Trump has noticeably pulled back his public support for Musk. In recent months, he did not mention Musk at all on his social media platform, Truth Social. This marks a stark change from the early Trump presidency, when Trump often praised Musk and his projects. Meanwhile, Musk’s social media posts focus more on his business ventures and less on politics. Their once-close relationship now seems distant, reflecting broader tensions between Trump and leading tech figures, as Trump now in war against influential industry voices.