Trump tariffs could make Apple's iPhone an almost Rs 2,00,000 luxury in the US

For years, the US has enjoyed a unique position in the global tech economy, particularly when it comes to Apple products. The iPhone, designed in California and manufactured overseas, has typically been cheapest on home soil. But with US President Donald Trump’s sweeping new tariffs on imports, the days of the affordable iPhone in America may be over.

The latest wave of tariffs announced Wednesday and billed as a bold economic protectionist move includes a baseline 10% duty on all imports, with significantly higher levies on key trading partners like China and South Korea. That means Apple’s iPhone, which relies heavily on a Chinese manufacturing pipeline, could become significantly more expensive for US consumers. According to projections by Rosenblatt Securities reported by Reuters, a top-tier iPhone model could soon retail for as much as $2,300, or nearly ₹2,00,000, a price tag previously unheard of in the US market.



The new import duties would hit Apple’s global supply chain hard, and unless the company absorbs the cost (an unlikely move given its shareholder commitments), consumers will feel the full weight. With India also among the countries impacted by the new tariffs, the ripple effect could extend to iPhone pricing as well. Earlier this year, The Economic Times reported that Apple had crossed the ₹1 trillion mark in iPhone exports from India in 2024, reaching a record $12.

8 billion (approx. ₹1.08 trillion) in outbound shipments, a 42% year-on-year jump.

This impressive growth is linked to a significant increase in local value addition, now estimated at 15–20% depending on the iPhone model. Domestic production has also surged by nearly 46% to $17.5 billion (₹1.

48 trillion) between January and December 2024, according to preliminary estimates. The US has long offered iPhones at the most competitive prices globally, with Apple setting standardised pricing devoid of hefty import duties. In comparison, countries like India or Brazil often pay hundreds more for the same device due to taxes, duties and currency differences.

But Trump’s tariff plan could upend that pricing model entirely. The proposed 24% to 54% tariffs on Chinese and Taiwanese goods would directly impact the cost of assembling iPhones, which are primarily manufactured in China through partners like Foxconn. While Apple has been working to diversify its manufacturing base, including scaling operations in India and Vietnam, the majority of high-end iPhones are still built in China.

That means the latest US tariff hike could be a direct hit. If implemented in full, analysts warn that the tariffs could ripple far beyond Apple. Tech giants like Microsoft, HP, and Dell, many of whom also rely on parts or final assembly abroad, may be forced to reevaluate pricing or production strategies.

Trump’s rationale is familiar: reciprocal tariffs to counteract trade imbalances and revive domestic manufacturing. “The tariffs give us great power to negotiate,” he said on Thursday. “I used it very well in the first administration.

.. now we’re taking it to a whole new level.

” But this “level” may end up pricing some of the world’s most coveted tech products out of reach for average American buyers. Ironically, it could be US consumers and not Chinese or Indian manufacturers who pay the price first. While the tariffs are set to kick in on April 9, industry players are hoping for a softening or carve-outs, especially for the tech sector.

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