U.S. President Donald Trump’s newly proposed tariffs could significantly impact iPhone prices. Since Apple manufactures most of its iPhones in China, the 54% tariff imposed on Chinese imports might lead to a 30–40% hike in iPhone prices if the tariffs remain in effect. If Apple chooses not to pass the extra cost on to consumers, it will have to absorb the increased manufacturing expenses itself—though that seems unlikely.
According to Reuters, the base variant of the iPhone 16 currently costs $799 in the U.S., but with a potential 43% increase, it could go up to around $1,142. Similarly, the iPhone 16 Pro Max, which is priced at $1,599, might rise to nearly $2,300.
Trouble Ahead for Apple
In his previous term, Trump had also imposed tariffs on Chinese imports but offered Apple some relief. This time, however, he’s shown no signs of going easy on the tech giant. As a result, Apple may have to either raise prices or bear the extra cost itself.
Counterpoint Research estimates that Apple would need to increase prices by an average of 30% to offset the impact of the tariffs. CFRA Research analyst Angelo Zino suggests that with iPhone sales already declining, Apple is unlikely to pass the full cost on to consumers. Instead, it might only raise prices by 5% to 10%.
Experts also believe that Apple could launch the upcoming iPhone 17 with a higher price tag to factor in the increased production costs.
Why iPhone Demand is Falling
Apple has been facing declining iPhone sales for a while. The company hasn’t been able to persuade users to upgrade with its AI features, branded as Apple Intelligence. If prices go up further, the demand for iPhones may dip even more.