According to TechInsights analyst Wayne Lam, the production cost for Apple’s popular smartphone could rise from $580 to $850 due to a staggering 54% tax on Chinese imports.
Apple, which manufactures its iPhones in China, is expected to pass these higher costs onto customers. Wedbush Securities analyst Dan Ives predicts that the price of a 256GB iPhone 16 Pro could jump from $1,100 to a shocking $3,500.
Trump’s tariffs are part of his strategy to encourage domestic manufacturing by making foreign goods more expensive.
However, experts argue that Apple still needs to import raw materials for its devices, meaning manufacturing iPhones in the U.S. would be financially unfeasible.
“Moving iPhone production to America would be a massive, mammoth undertaking,” said Barton Crockett, a senior research analyst at Rosenblatt Securities.
Trump’s tariffs on China could make iPhones more expensive by 30% to 43%, since most iPhones are made in China.
iPhone prices could rise by 43%, meaning the base iPhone 16 model could start at $1,142, while the high-end iPhone 16 Pro Max could cost up to $2,300.
— Moe (@moneyacademyKE) April 6, 2025
Currently, assembly costs in China are approximately $30, but if Apple were to shift production to the U.S., this cost could increase tenfold, according to Lam.
Apple declined to comment on any potential price hikes related to the tariffs. Meanwhile, the tariffs imposed by Trump are set to affect all U.S. imports, starting with a 10% tariff on Saturday. More than 90 countries, including China, will face additional reciprocal tariffs aimed at reducing the U.S. trade deficit.
In retaliation, Chinese President Xi Jinping announced that the country will implement a 34% tariff on all U.S. imports starting on April 10, matching the reciprocal levy imposed by Trump.
The back-and-forth tariffs are seen as a clear escalation, with both countries engaging in a trade battle that shows no signs of cooling off.
Craig Singleton, senior China fellow at the Foundation for Defense of Democracies, commented, “China’s new tariffs stop short of a 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.”
The effects of these tariffs are expected to be far-reaching, and with domestic production unlikely to be a viable solution, consumers may soon see their tech products become significantly more expensive.