Connect with us

Hi, what are you looking for?

Metaverse CapitalistsMetaverse Capitalists

Business

iPhone prices could triple under Trump’s tariffs as Apple faces China tax blow

The cost of an iPhone could more than triple in the US market following President Donald Trump’s sweeping new trade tariffs, analysts have warned — a move likely to reverberate through global supply chains and consumer tech markets.

Apple, which assembles the vast majority of its devices in China, now faces a staggering 54% tariff on Chinese imports under Trump’s newly announced ‘Liberation Day’ tariff strategy. The price of producing the next-generation iPhone 16 Pro could rise from $580 to $850, according to TechInsights analyst Wayne Lam.

In turn, Wedbush Securities analyst Dan Ives estimates that the retail price of a 256GB iPhone 16 Pro could soar from $1,100 to as much as $3,500, if Apple passes those costs directly on to consumers.

Trump’s protectionist policy aims to reshore manufacturing to the United States by making foreign-made goods significantly more expensive. However, industry experts argue that Apple lacks a commercially viable path to US-based production, particularly at scale.

“It’s not clear you can make a competitively priced smartphone here,” said Barton Crockett, senior analyst at Rosenblatt Securities, speaking to The Wall Street Journal.

Currently, assembling an iPhone in China costs Apple about $30 per unit — a cost that would be expected to increase tenfold if shifted to the US, Lam noted.

Apple declined to comment on the potential impact of the new tariffs, or whether it plans to raise prices or restructure its supply chain in response.

Trump’s ‘Liberation Day’ declaration framed foreign trade practices as a national emergency, and introduced a new baseline of 10% tariffs on all imports to the US, effective from this Saturday.

In addition, more than 90 countries — including traditional US allies — are facing bespoke ‘reciprocal tariffs’, designed to eliminate bilateral trade deficits. These rates are calculated individually and are significantly higher for countries with larger US trade surpluses, such as China, Germany, and Vietnam.

In response, China has announced a 34% retaliatory tariff on all American imports, effective 10 April — mirroring the rate imposed on its own goods by the Trump administration. The move escalates the brewing trade tensions between the world’s two largest economies.

“China’s new tariffs stop short of full-blown trade war, but they mark a clear escalation,” said Craig Singleton, senior China fellow at the Foundation for Defense of Democracies.
“They match Trump blow-for-blow and signal that Xi Jinping won’t sit back under pressure.”

Trump’s trade stance is already rattling markets and raising serious concerns among global technology firms, who rely heavily on international supply chains for production and distribution. Apple, one of the most exposed companies in this conflict, is under mounting pressure to evaluate its long-term supply strategy — but experts say relocating its hardware production to the US is not feasible in the near term.

The tariffs come at a time of intensifying geopolitical and economic friction, and further strain an already delicate trade relationship between Washington and Beijing. Analysts warn that a prolonged standoff could trigger inflationary pressures, reduced global demand, and slower economic growth, while undermining investor confidence.

“The longer this drags, the harder it becomes for either side to deescalate without losing face,” Singleton noted.

Read more:
iPhone prices could triple under Trump’s tariffs as Apple faces China tax blow

    You May Also Like

    Stocks

    In this edition of StockCharts TV‘s The Final Bar, Dave shows how breadth conditions have evolved so far in August, highlights the renewed strength in the...

    Business

    In the UK, the care sector is under incredible strain, it’s good to know there are people working hard to address the issue. One...

    Business

    With the increased threat of industrial strike action looming across the UK, we consider whether a force majeure clause can strike the right chord...

    Politics

    On January 10, the French government announced plans to raise the retirement age from 62 to 64. The change would mean that after 2027,...

    Dislaimer: pinnacleofinvestment.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 metaversecapitalists.com | All Rights Reserved