Trump Tariffs To Make iPhone Costly? Here's What This Report Says

Apple’s iPhones might soon come with a much heftier price tag if proposed U.S. tariffs on Chinese goods are implemented. According to a Reuters report, former U.S. President Donald Trump is pushing for a 54 per cent tariff on imports from China, which could significantly impact iPhone pricing as most iPhones are still made there.

Analysts cited by Reuters estimate that prices of iPhones could rise between 30 per cent and 43 per cent if Apple decides to pass on the increased cost to consumers rather than absorb it. For instance, the base model of the iPhone 16, priced at around $799 (approximately Rs 68,200), could go up to around $1,142 (approximately Rs 97,400). The premium iPhone 16 Pro Max, currently selling at around $1,599 (approximately Rs 1,36,100) might reach nearly $2,300 (approximately Rs 1,96,200).

Reuters reported that Apple sells over 220 million iPhones globally each year, with its largest markets being the U.S., China, and Europe. A newly launched entry-level model, the iPhone 16e, priced at around $599 (approximately Rs 51,100), could also rise to around $856 (approximately Rs 72,900) if the full 43 per cent hike is applied.

According to Barton Crockett from Rosenblatt Securities, the latest tariff moves have caught analysts off guard, as Apple had previously managed to secure waivers during earlier trade tensions. This time, no exemptions have been granted, making Apple more vulnerable to cost pressures.

Angelo Zino, equity analyst at CFRA Research, told Reuters that Apple is unlikely to pass the full cost on to buyers, suggesting that a 5–10 per cent increase is more realistic in the near term. He expects any significant price changes to come with the launch of the iPhone 17 later this year.

Even though Apple has started moving some production to India and Vietnam, Reuters noted that those regions are also facing tariffs — 26 per cent for India and 46 per cent for Vietnam. Neil Shah, co-founder of Counterpoint Research, said Apple may need to raise prices by at least 30 per cent on average just to offset the higher import duties.

Reuters said it reached out to Apple for a comment, but the company has not responded.

A significant jump in iPhone prices could weaken consumer demand and provide an advantage to South Korea’s Samsung Electronics, as its devices are produced in a country facing lower U.S. tariffs compared to China, where all iPhones sold in the U.S. are currently manufactured.