Will Your Next iPhone Cost $2.3K? 4 Things To Know About Trump’s Tariffs and Your Favorite Tech Tool
Written by
Cynthia Measom
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Amber Barkley
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If you’re planning to upgrade your iPhone, you could be bracing yourself for a much bigger blow to your budget than usual.
On April 9, 2025, President Donald Trump imposed a 145% tariff on Chinese imports, which didn’t bode well for Apple. Because Apple still relies on China to assemble roughly 90% of its iPhones, per CNBC, consumers were concerned that the higher import cost could be passed along to U.S. buyers.
Smartphones Are Exempt From Tariffs — For Now
While the initial tariff increase sparked worry about increased costs for technology Americans rely heavily on, the White House issued a clarifying memo exempting some electronics — including smartphones — from the increased tariffs, NPR reported.
However, in an interview with ABC on April 13, Commerce Secretary Howard Lutnick said those tariffs are likely to return under a “semiconductor tariff” category, rather than the existing reciprocal tariffs, which smartphones are exempt from.
iPhone Costs Could Rise as High as 43%
According to analysts at Rosenblatt Securities, the cost of the iPhone could rise by 43% if Apple passes the entire cost on to consumers, Reuters reported. The iPhone 16 Pro Max, which starts at $1,599, could be priced as high as $2,300 — an increase of approximately $700 — under the reciprocal tariff structure.
UBS estimated a lesser increase in retail prices — about 30% — for any iPhones manufactured in China, CNBC reported.
While it is currently unknown what tariff percentage will be laid upon the semiconductor category — which Lutnick said could be expected in “a month or two” — it is likely that any tariff on smartphones will increase their price accordingly.
Apple Is Scrambling To Stay Ahead of the Tariffs
On April 10, Reuters reported that Apple airlifted 600 tons of iPhones from India to the U.S in a move meant to get ahead of rising costs.
But those efforts aren’t enough to fully avoid the tariff. As of April, most iPhones are still made in China, and the cost to import them is expected to go up.
Price Hikes Are Likely Coming — But When?
While smartphones have been granted a temporary reprieve from tariffs, it may not last long.
Experts say Apple may have no choice but to raise prices, unless it quickly shifts more production to other countries and gets rid of its lower-margin iPhones, such as those that have less storage, according to Morningstar.
However, Reuters reported that Angelo Zino, an equity analyst at CFRA Research, said Apple will likely hold off on major price hikes until the iPhone 17 launches this fall. He also said the company may only be able to pass along 5% to 10% of the added cost to consumers for now.
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