Apple iPhone could become even more expensive under President Trump Mutual Tariffs In about 90 foreign countries, scheduled to take effect on Wednesday However, it is currently pending for 90 daysexcept for China’s taxation.
On Tuesday, the White House threatened to raise the costs of all electronic devices, including iPhones. 104% tariff on all Chinese products Taxation imported into the US came into effect at 12:01am EDT on Wednesday. Later on Wednesday, Trump raised the tariff rate to 125%, which he quickly took effect.
The most basic model starts at $599, the price of popular technical tools, iPhone 16eit’s poised to increase hundreds of dollars depending on how Apple responds to drastic taxation. The iPhone 16 Pro 128 GB, featuring Apple Intelligence, costs $999.
The iPhone accounts for about half of Apple’s revenue. Most of the smartphones are manufactured in China.
Wedbush Securities Tech analyst Dan Ives said in a research note on Tuesday that additional taxation could create a “category 5 price storm” for personal electronics and other gadgets. Taxing China and other countries at such a speed is equivalent to “turning the boat upside down in a life-raftless ocean,” he added.
How much does an iPhone cost?
One of the devices assembled in China, the iPhone 16 Pro Max 256 GB is retailing for $1,199. Under new tariffs on Chinese imports, the device’s price could rise by $675 (56%), increasing the price to $1,874.
The cost of the iPhone 16 Pro 128 GB, made in India, at $999, could increase to $1,119, an increase of 12%, the investment bank has found.
A April 3 analysis of Rosenblatt Securities found that the Cupertino, California-based company could raise iPhone prices by 43% to offset the effects of mutual tariffs.
Apple did not respond to requests for comment on how Trump’s tariffs will affect iPhone prices.
What happens if Apple moves production to the US?
President Trump said the new US tariffs are intended to spur both domestic and foreign companies to build in the US, but for Apple and other companies, manufacturing products in the US is intended to involve significantly higher labor costs, or costs passed on to consumers.
If Apple begins assembling iPhones in the US, a Chinese-made device that previously sold for $1,000 would cost $3,500 if manufactured in New Jersey, Texas or other states.
“What we say can make this in the US is the complexity of the supply chain in Asia and the statement that we will be sparingly refraining from electronics, chips, semi-fabs, hardware, smartphones and more for US consumers over the past 30 years,” he said in the report.
As a result, Ives is extremely skeptical that tariffs alone lead companies to move manufacturing plants from low-cost shelters like China to the United States, calling the idea “absurd.”
However, some companies, including Apple, have been able to try to readjust their supply chains to avoid the sharpest tariffs. For example, Apple plans to reduce its dependence on China by manufacturing more iPhones in India, the Wall Street Journal reported, citing people familiar with the issue.
