Donald Trump's tariff spree may push iPhone prices up by 43%, analysts warn | CliqExplainer

Apple iPhones could soon get significantly more expensive for consumers, with prices expected to rise by up to 43% due to US President Donald Trump’s newly imposed reciprocal tariffs. The sweeping measures include a 10% baseline import duty on all goods and additional country-specific rates, with China facing among the highest cumulative tariffs. As Apple continues to rely on China for a major share of its iPhone production, the company finds itself particularly vulnerable to these new trade rules.

According to a Reuters report citing analysts, most iPhone models could see a steep price increase if Apple decides to pass on the new tariff costs to consumers. The base model iPhone 16, currently priced at $799, could cost up to $1,142—a jump of nearly 43%. Similarly, the iPhone 16 Pro Max may see its price rise from $1,599 to around $2,300. Even the entry-level iPhone 16e, known for its AI features, could climb from $599 to $856.

Rosenblatt Securities estimated that the tariffs could potentially cost Apple up to $40 billion. During Donald Trump’s first term, Apple had secured a waiver from similar tariffs, but this time, the tech giant has not been granted any such exemption. As a result, Apple shares dropped 9.3% on Thursday, marking their worst trading day since March 2020.

Tariff Impact Goes Beyond China

Although Apple has been diversifying its production with bases in Vietnam and India, these regions are also facing substantial tariffs of 46% and 26% respectively. India, which assembled 14% of Apple’s global iPhones in FY24 according to the Economic Survey, is not exempt from the impact.

Analysts have noted that Apple is now under pressure from multiple directions. The rollout of its new AI-linked features, including integration with ChatGPT, has not significantly driven new sales or upgrades. Combined with increased costs due to tariffs, this could strain Apple’s financial performance.

Industry experts like Neil Shah from Counterpoint Research suggest that Apple may need to raise prices by at least 30% to absorb the added import duties. Meanwhile, Samsung, which is subject to a lower 25% tariff as a South Korean company, may gain a competitive edge amid the shifting dynamics of global trade.

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