Ives: The problem with producing tech hardware in the US is the supply chain “does not exist”

President Trump’s reciprocal tariffs went into effect last night, including ones that would effectively more than double the price of Chinese imports, and the stock market and analysts are angry.

In a note this morning, Wedbush’s Dan Ives threw the analyst equivalent of haymakers, calling the move the “worst US policy mistake since Smoot-Hawley.” He went on to again debunk the idea that tech hardware could realistically be produced in the US since the “hearts and lungs of the supply chain are cemented in Asia.”

“A US tech company CEO cannot decide last night... ‘Let’s call Smith Semi Fab Operations in the Midwest to get those semi chips’... as there is one slight problem... IT DOES NOT EXIST... and would take 4-5 years to build a manufacturing plant... and the labor force does not support this in the US... the IP of the supply chain is cemented in Asia after 30 years of making US tech products... and the products will go up 3x-4x once implemented after years... being paid by the US consumers/companies. In essence, this tariff policy unveiled last week by the Trump Administration has turned the global supply chain upside down and US consumers are the ones paying the tariff/tax... it’s not a debate.”

These remarks are seemingly a direct response to comments made by White House Press Secretary Karoline Leavitt, who was asked if Trump thought Apple iPhones could be made in the US, and responded: “Absolutely. He believes we have the labor, we have the workforce, we have the resources to do it.”