President Donald Trump’s tariffs are expected to significantly impact everyday consumer products, but the steepest tariffs will target imports from China. This news puts Apple iPhones in the spotlight, as their prices could rise dramatically.
A recent CNN article stated that the White House clarified that Chinese imports will face a tariff of at least 145%, meaning that all items and materials imported will receive a severe price increase. This extreme tariff could potentially pose issues for Apple. According to CBS, approximately half of Apple’s revenue comes from iPhones, which are almost exclusively produced in China. If the iPhone 16 Pro 128 GB were made after the new tariffs were imposed, its $999 price could increase by several hundred dollars.
The Wall Street Journal explained that during Trump’s previous administration, Apple received a tariff exemption for a select few items. However, it is unclear if the same exemption will be enacted this time around, though there are talks that it may.
The BBC reported that Trump explained his intention with the tariffs as encouraging Americans to buy from American-made businesses. However, in Apple’s case, American-made does not seem like the most financially conscious decision. If the prices for an iPhone produced and imported from China seemed steep, the cost of an entirely American-made iPhone is completely absurd.
An article by Newsweek explained that, in the most extreme cases, an iPhone produced in the United States could cost up to $100,000. This maximal price was broken down by investor Glenn Lukk. Lukk explained that the skill sets of American workers producing tech items are nowhere near the level of expertise of workers in tech-driven countries. Therefore, it would be extremely difficult to mass-produce iPhones in this work environment since the workers do not have adequate skills.
While the $100,000 iPhone is at the absolute maximum of the price range, it is not bizarre to speculate about the potential price increase that Apple customers could face following the tariffs. Dan Ives, global head of technology research at Wedbush Securities, told Newsweek that the modern iPhone could realistically cost $3,500 if produced in America. Another CBS article states that Apple is currently working to move iPhone operations to India, where the tariffs are significantly lower. They have reportedly been airlifting iPhones from India to the United States.
Newsweek reported that Trump stated that the tariffs on China will not be rolled back. According to CBS, many companies will have to reconfigure their operations to counteract the severe tariffs on China. As college students, it’s important to stay informed about how major products are made, especially the ones we rely on every day. Our phones have become essential, and staying aware of rising prices in today’s economy helps us make more informed choices.