iPhone Prices May Rise 40% in US Amid Trump Tariff Policy
US President Donald Trump’s reciprocal tariffs have intensified fears of a global trade war and sharp price hikes across various commodities, especially Apple’s iPhones.
Rosenblatt Securities estimated that if Apple passes the tariff costs to customers, a high-end iPhone could cost around $2,300, according to a Reuters report.
Trump’s tariffs have hit iPhones the hardest, pushing prices up by 30% to 40% for consumers.
iPhone Manufacturing in China
Apple manufactures most iPhones in China, which has imposed a 54% reciprocal tax. This forces Apple to either absorb the extra cost or pass it on to buyers.
After news of the tariff penalty broke, Apple’s stock plunged 9.3%, marking its steepest decline since March 2020.
Apple sells over 220 million iPhones annually, with the US, China, and Europe as its top three markets.
iPhone Prices After Tariffs
Analysts cited in the report said the base iPhone 16, launched at $799 in the US, could rise to $1,142 if Apple passes on the full tariff burden—a 43% increase.
The iPhone 16 Pro Max, which features a 6.9-inch display and 1TB storage and currently retails at $1,599, could cost around $2,300—a similar 43% price jump.
The entry-level iPhone 16e, released in February at $599 and featuring Apple’s AI capabilities, could rise to $856.
However, CFRA Research equity analyst Angelo Zino predicted Apple might only pass on 5% to 10% of the costs. “We expect Apple to delay any major phone price hikes until this fall when the iPhone 17 launches,” Zino told Reuters.
Although Apple has shifted some production to Vietnam and India, most iPhones are still made in China. Neither Vietnam nor India are exempt from tariffs—India faces a 26% tariff, and Vietnam 46%.
Counterpoint Research co-founder Neil Shah stated that Apple would need to raise prices by at least 30% on average to offset the latest tariffs.
Apple’s $500 Billion US Investment
On February 24, 2025, Apple announced it would invest over $500 billion in the US over the next four years.
“With this $500 billion commitment to our nation’s future, we are proud to build on our longstanding US investments and we are bullish on the future of American innovation,” said Apple CEO Tim Cook.
