New York: The cost of owning an iPhone could soon skyrocket following President Donald Trump’s latest round of tariffs introduced under what he has dubbed “Liberation Day”. Experts warn the tariffs will significantly increase the price of production for Apple’s flagship devices—and ultimately hit consumers with inflated price tags.
According to TechInsights analyst Wayne Lam, the production cost of the newest iPhone model could jump from $580 to approximately $850 due to the newly imposed 54 percent import tax on goods manufactured in China. Apple, which relies heavily on Chinese manufacturing, would likely pass these increased expenses directly onto buyers.
Wedbush Securities analyst Dan Ives projected that the retail price of a 256GB iPhone 16 Pro could skyrocket from the current $1,100 to an astonishing $3,500 if the full cost impact is passed on.
President Trump defended the tariffs, claiming they would push companies to shift manufacturing back to the United States by making foreign products more expensive. However, analysts remain skeptical about the feasibility of such a transition for Apple.
“There is not an economical way to make iPhones on US soil,” industry experts say, pointing to the complexity and global supply chain Apple relies on. Barton Crockett, senior research analyst at Rosenblatt Securities, emphasized the challenges: “Moving iPhone production to America would be a massive, mammoth undertaking.”
“It’s not clear you can make a competitively priced smartphone here,” Crockett told The Wall Street Journal.
Currently, the cost of assembling an iPhone in China is about $30. If production were to shift to the U.S., that figure could multiply tenfold, Lam explained.
Apple has not publicly commented on the potential retail impact of the tariffs or any pricing adjustments.
The tariffs were announced on what Trump declared “Liberation Day”, a move his administration framed as a response to what it describes as unfair global trade practices that have harmed the U.S. economy. Starting Saturday, all imports into the U.S. will be subject to a minimum 10 percent tariff. Additionally, more than 90 countries will face so-called “reciprocal tariffs” by April 9, designed to balance the United States’ trade deficits.
The White House said these tariffs are tailored to match what it deems imbalanced trade relationships. China is among the countries targeted with these new levies, prompting a swift response from Beijing.
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In retaliation, Chinese President Xi Jinping announced a 34 percent tariff on all imports from the United States, effective April 10. The measure mirrors the 34 percent reciprocal tariff imposed by Washington and adds to existing tariffs already in place.
“China’s new tariffs stop short of full-blown trade war, but they mark a clear escalation—matching Trump blow-for-blow and signaling that Xi Jinping won’t sit back under pressure,” Craig Singleton, senior China fellow at the Foundation for Defense of Democracies, told the Associated Press.
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This latest escalation follows two previous rounds of 10 percent tariffs imposed by Trump on Chinese imports. Observers warn that continued tit-for-tat measures may soon reach a critical point.
“The longer this drags, the harder it becomes for either side to deescalate without losing face,” Singleton cautioned.
