The Impact of Trump’s Tariffs on the Price of the Latest iPhone

The price of an iPhone is set to skyrocket under President Donald Trump’s ‘Liberation Day’ tariffs crackdown, experts have warned.

The latest model of the popular smartphone is projected to see a significant increase in production costs, jumping from $580 to $850, as noted by TechInsights analyst Wayne Lam in a statement to The Wall Street Journal.

This is because Apple manufacturers its iPhone in China, which has been hit with a staggering 54 percent tax on its imported goods.

Due to these escalated production expenses, the tech corporation is anticipated to transfer the additional costs to the end consumer, resulting in a substantial price hike for the 256GB iPhone 16 Pro model. Wedbush Securities analyst Dan Ives suggested that the price could soar from $1,100 to a staggering $3,500.

The president claims his tariffs will encourage domestic manufacturing by increasing the price of foreign products.

Despite the potential price adjustments, Apple is still likely to rely on importing the necessary raw materials for manufacturing its devices, as experts argue that producing iPhones within the United States would not be a cost-effective solution.

Moving iPhone production to America would be a, ‘massive, mammoth undertaking,’ senior research analyst at brokerage firm Rosenblatt Securities Barton Crockett told the WSJ. 

The cost of making an iPhone 16 with 256 GB will go from around $580 to $850, experts explained to The Wall Street Journal (stock image) 

Part of Trump’s motivation for imposing taxes or international imports was to encourage domestic manufacturing 

In response to Trump’s Liberation Day, Chinese President Xi Jinping declared the country will tack on an additional 34 percent tariff on all US imports

‘It’s not clear you can make a competitively priced smartphone here,’ he told the outlet. 

Currently the cost of assembly is around $30 in China, but this would soar by ten times if production moved to the US, Lam explained. 

Apple declined the WSJ’s request for comment on any potential price increases related to the newly imposed tariffs. 

On ‘Liberation Day’, Trump declared that foreign trade and economic practices have sparked a national emergency. 

All nations will be faced with at least 10 percent tariffs on all US imports starting on Saturday.

But more than 90 countries will be hit with additional reciprocal tariffs in order to make the US ‘wealthy again’ by April 9. 

Reciprocal tariffs, according to the White House, are the rates ‘necessary to balance bilateral trade deficits between the US and each of our trading partners.’ 

Several countries – including China – will be subjected to these individualized taxes, which are calculated by the White House while factoring in those nation’s trade policies. 

In response to Trump’s Liberation Day, Chinese President Xi Jinping declared the country will tack on an additional 34 percent tariff on all US imports. 

The new tariff, which comes into effect on April 10, matches the rate of the ‘reciprocal’ 34 percent levy imposed by Trump. The levies are in addition to the existing tariffs already imposed on US goods.

‘China’s new tariffs stop short of full-blown trade war, but they mark a clear escalation – matching Trump blow-for-blow and signaling that Xi Jinping won’t sit back under pressure,’ Craig Singleton, senior China fellow at the Foundation for Defense of Democracies, told the Associated Press. 

Prior to Wednesday’s announcement, Trump had already hit China with two rounds of 10 percent importing tariffs.

‘The longer this drags, the harder it becomes for either side to deescalate without losing face,’ Singleton warned.