Wedbush analyst Dan Ives pushed back on President Donald Trump’s Friday announcement of a special tariff on Apple iPhones. “We believe the concept of Apple producing iPhones in the [U.S.] is a fairy tale that is not feasible,” Ives wrote to clients in a Friday note. Trump said in a social media post that Apple will have to pay a tariff of “at least 25%” on iPhones made outside the U.S. Apple shares fell 3% as investors reacted to the shocking development of a specific tariff on a single company. AAPL 1D mountain Apple, 1-day Ives called Trump’s call to move production to the U.S. “not realistic” in his Friday note, given that it would take five to 10 years to onshore manufacturing. With this in mind, the well-known tech analyst said there is “no chance” that iPhone production happens in the U.S. in the near term, adding that such a move would require “Herculean-like supply chain logistics.” Ives also reiterated his previous estimate that an American-made iPhone would require a price tag of around $3,500 . Despite what he described as a “frustrating situation for investors,” Ives maintained his outperform rating on Apple. He said CEO Tim Cook’s experience navigating politics in the past should give him skills to negotiate, especially with iPhone 17 production on the horizon. Ives has an above-average price target of $270, which implies Apple shares can rally about 34% over Thursday’s close.