How Trump's Tariffs Could Push iPhone Prices Higher

• Apr 09, 2025

President Trump's tariffs on Chinese imports could significantly increase the price of iPhones, which are mostly manufactured in China. Starting Wednesday, a 104% tariff will be imposed on all Chinese goods entering the United States, impacting electronics like iPhones. This tariff could raise the cost of an iPhone by hundreds of dollars, depending on how Apple decides to handle the price hike.

The iPhone, which accounts for about half of Apple’s revenue, is particularly vulnerable to these new tariffs. For instance, the iPhone 16 Pro Max 256 GB, which currently retails for $1,199, could see its price rise by $350, bringing it to $1,549. The iPhone 16 Pro 128 GB, made in India, could see a more modest increase of 12%, pushing its price from $999 to $1,119.

According to Dan Ives, a tech analyst at Wedbush Securities, these new tariffs could trigger a “category 5 price storm” for electronics. He likened the impact of such steep tariffs to “flipping a boat upside down in the ocean with no life rafts.” If Apple decides to raise its prices, it could result in a price surge of up to 43%, according to a report from Rosenblatt Securities.

Apple has not publicly commented on how the tariffs will impact the cost of its products. However, the company is already taking steps to diversify its supply chain to reduce reliance on China. For example, Apple plans to increase iPhone production in India. This move could help Apple avoid the full impact of the tariffs and maintain more control over its production costs.

The idea of Apple moving its manufacturing entirely to the U.S. has been floated, but experts believe this would drastically raise costs. Manufacturing an iPhone in the U.S. could increase its price from around $1,000 to as much as $3,500 due to the significantly higher labor costs. As Ives notes, shifting production to the U.S. would ignore the complexity of the supply chain that has been built over the past three decades in Asia.

While Trump’s tariffs aim to encourage companies to move production to the U.S., the high cost of manufacturing in America makes it unlikely that Apple and other companies will make such a drastic move. Instead, Apple and others may continue to look for ways to adjust their supply chains in response to these new economic pressures.