Apple and other tech giants rely heavily on overseas manufacturing, particularly in China and Taiwan. Ives cautioned that producing iPhones domestically under current cost structures would triple the retail price, pricing out millions of American consumers and undermining competitiveness.

“This is a bad science experiment,” Ives stated, warning that the strategy could set the U.S. tech sector back a decade and cripple the AI revolution, which depends on fast-moving, globalized production.

Wall Street Worries: Inflation, Recession Fears Rise

The announcement has rattled Wall Street, with growing fears that inflation could double in 2025, reversing post-pandemic economic recovery gains. Another market analyst highlighted the disconnect between Trump’s long-term reshoring agenda and the short-term political and economic consequences, including a potential recession paired with soaring consumer prices.

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Global Fallout: China Retaliates

China has already fired back, imposing 34% tariffs on U.S. imports, further escalating trade tensions. The tit-for-tat dynamic threatens to spiral into a full-blown trade war, putting even more pressure on global markets.

Dan Ives concluded his report with a direct appeal to lawmakers: “U.S. consumers pay the price for this. Not a debate.” He urged policymakers to reconsider the proposed tariffs before lasting damage is done.