TMTPOST -- Apple will not move its iPhone production to the United States in the short term due to the high costs associated with the move, according to tech journalist Mark Gurman. Under the U.S. government’s latest tariff policies, the cost of assembling iPhones in the U.S. remains prohibitive, primarily due to the country’s high labor costs. If Apple were to manufacture iPhones in the U.S., production capacity would be drastically reduced, and the company would be forced to pay U.S.-standard wages, which would be passed on to consumers through higher prices. Investment bank Morgan Stanley estimates that the new tariffs will add about $8.5 billion to Apple’s costs annually. Analysts cited by Reuters suggest that if Apple were to pass the entire tariff cost onto consumers, the price of the iPhone 16 Pro Max could rise from its current retail price of $1,599 to around $2,300. In February, Apple pledged to invest over $500 billion in the U.S. over the next four years, including setting up AI server factories in Texas and a new chip production plant in Arizona, in an attempt to persuade the Trump administration to exclude Apple products from the tariff lists. However, analysts argue that building a new factory in the U.S. would take four to five years, and the U.S. lacks the necessary infrastructure and workforce to support a high-tech manufacturing facility. Beyond iPhones, there are no immediate plans for Apple to produce other products in the U.S., as many of these items are manufactured in small batches that don't require substantial labor investment. When President Trump was first elected in 2016, Apple explored the possibility of assembling iPhones in the U.S. but abandoned the idea due to the doubling of costs. At the time, analysts predicted that the cost of assembly alone could increase from $4 per unit to $30-$40 per unit, and a full supply chain relocation could double the iPhone's price. During Trump’s first term, Apple worked on diversifying its supply chain, including shifting some phone and earphone production to India, and moving some earphone, watch, and computer production to Vietnam. Apple also expanded its computer product manufacturing lines in Malaysia and Thailand. However, Trump's administration's plan to impose high reciprocal tariffs has created significant challenges for Apple’s supply chain. Gurman also suggests that Apple may negotiate with its supply chain to secure lower pricing or further adjust its supply chain, diversifying component suppliers and product assemblers across different regions to mitigate tariff challenges, ensuring profitability under the latest U.S. tariff policies. Last August, reports indicated that Apple would begin manufacturing the upcoming iPhone 16 Pro and Pro Max models in India, with expectations that India’s share of global iPhone production would increase from 14% to 25%. There are also reports that Apple is considering expanding its iPhone production lines in Brazil, with Foxconn's Jundiaí plant in São Paulo already assembling the iPhone 13, 14, and 15 models, and now beginning production of the iPhone 16.