“iPhone Prices Set to Soar? Trump’s Tariffs on China Trigger Global Tech Alarm“
The world’s most popular gadgets — from smartphones and laptops to tablets and smartwatches — may soon carry a much higher price tag, particularly in the US, as a result of former President Donald Trump’s aggressive new tariffs on Chinese imports.
Under the updated trade policy, a 145% tariff now applies to goods manufactured in China — a move that could directly affect Apple and its flagship product, the iPhone. Analysts suggest that if Apple passes these added costs onto consumers, Americans could see price hikes of several hundred dollars per device.
With Apple producing nearly 80% of its US-destined iPhones in China, the tariffs could lead to a significant rise in global prices as well. Industry expert Ben Wood from CCS Insight told the BBC that Apple is unlikely to introduce region-specific pricing, as that could encourage grey-market reselling.
To avoid massive pricing gaps between countries, Apple may increase prices globally — including in the UK and EU. Longer phone contracts, possibly stretching up to five years, could become the new norm as consumers seek to offset the financial hit.
While Apple has diversified some of its production to India and Vietnam in recent years, the majority of its devices are still assembled in China. Following the tariff announcement, Apple reportedly chartered cargo planes to move over 600 tons of Indian-made iPhones to the US, as it seeks to accelerate production outside China.
A temporary 90-day pause on tariffs for Indian goods may give Apple a short-term advantage, but questions remain about long-term strategies and costs.
🇺🇸 Trump’s Push for ‘Made in America’
The tariffs are part of Trump’s push to boost domestic manufacturing. Apple has pledged a $500 billion investment in the US, but experts argue that relocating even a portion of its supply chain could take years and cost billions.
Dan Ives of Wedbush Securities estimates that shifting just 10% of Apple’s supply chain to the US could take three years and $30 billion — with major disruptions along the way.
Forrester analyst Dipanjan Chatterjee believes Apple’s strong profit margins could cushion the initial blow. However, with iPhones potentially rising from $1,199 to $1,999 — and “Made in USA” versions rumored to cost up to $3,500 — even the most loyal Apple customers might start to hesitate.
Amid the uncertainty, American buyers are already taking action. In New York, shoppers rushed to Apple stores to make purchases before the price hikes hit.
“I didn’t need a phone right now, but I’m not ready to pay double,” said Anthony Cacioppo, a DJ and technician. Others, like personal finance editor Julia Baumann, said they bought devices like the MacBook preemptively, expecting prices to spike.
Despite the looming costs, some users, like hairstylist Bruce Conroy, remain committed to the brand. “I would have still stuck with Apple, but maybe waited longer.
We will likely have to wait until the autumn to see how much the next iPhone will cost.
But if it looks like costs incurred by tariffs will result in higher price tags, some may look to rival handsets or second-hand devices.
CCS Insight estimates that 5.5m second-hand smartphones will be sold in the UK in 2025, representing 29.7% of the total market.
The iPhone remains one of the most expensive smartphones on the market – and brands such as Google and Samsung offer phones with similar features at a lower cost.
The other option, and perhaps the most cost-effective, could be for people to skip upgrades to newer iPhone models and look to slightly older, cheaper versions.
“The path of least resistance would be to keep the smartphone they already have for longer,” said Mr Wood.
Additional reporting by Paul Sargeant, Tom Finn and Pratiksha Ghildial.