2 weeks Ago
American consumers may soon face a hefty price hike on Apple iPhones, as analysts warn that U.S. President Donald Trump’s newly imposed tariffs on Chinese imports could drive up costs by as much as 43%.
If Apple passes the costs on to customers, the flagship iPhone 16 Pro Max could see its price skyrocket to nearly $2,300, according to a report from Rosenblatt Securities. The tariffs, announced Wednesday as part of Trump’s sweeping trade policy, impose a 54% levy on Chinese imports, with no exemptions for Apple this time. Despite Apple’s recent efforts to shift some production to India and Vietnam, both countries have also been hit with tariffs of 26% and 46%, respectively.
Stock Impact and Consumer Reactions Apple’s stock plummeted more than 8% following the tariff announcement, marking its worst trading day since September 2020. The Cupertino-based tech giant, which sells over 220 million iPhones annually, now faces a difficult choice: absorb billions in added costs or raise consumer prices. If the full 43% price increase is passed on, the base iPhone 16 model, originally priced at $799, could cost as much as $1,142, while the more affordable iPhone 16e ($599) could climb to $856.
Many Apple customers buy iPhones through installment plans from cellular carriers, but higher retail prices could dampen demand. With iPhone sales already stagnating in major markets due to lukewarm reception of Apple’s AI-driven features, the potential price surge could further slow down upgrades. Samsung Could Benefit South Korea’s Samsung Electronics could emerge as the biggest beneficiary of Apple’s tariff troubles.
Since South Korea faces significantly lower U.S. import duties than China, Samsung devices may remain more competitively priced, making them an attractive alternative for consumers hesitant to pay more for iPhones.
Apple isn’t the only company affected by Trump’s new tariff regime. The White House also imposed tariffs on a wide range of imported goods, including: The policy aims to encourage U.S.
manufacturing and reduce reliance on foreign imports, but critics argue it will increase costs for American consumers and businesses. Apple could negotiate with the White House for exemptions, as it successfully did during Trump’s first term. However, Rosenblatt Securities warns that if these tariffs remain in place, Apple could lose up to $40 billion in revenue.
ALSO READ : Trump’s Tariffs May Shrink Global Trade By 1% In 2025, Warns WTO.
