The cost of owning an iPhone in the United States could skyrocket following former President Donald Trump’s sweeping new tariff policy, with analysts warning of potential price hikes that could more than triple the cost of Apple’s flagship devices.
Under Trump’s newly announced “Liberation Day” trade initiative, a 54% tariff has been imposed on Chinese imports — a move that hits Apple particularly hard, as the company assembles the majority of its devices in China. Industry analysts suggest this could drive the production cost of the upcoming iPhone 16 Pro from $580 to $850 per unit.
If Apple passes these costs on to consumers, the retail price of a 256GB iPhone 16 Pro could surge from $1,100 to as high as $3,500, according to Wedbush Securities analyst Dan Ives. The sharp increase stems not only from the manufacturing tariffs but also from the broader economic ripple effects caused by the new trade policy.
Trump’s protectionist strategy, aimed at reshoring manufacturing to the U.S., imposes a baseline 10% tariff on all imports starting this Saturday. Additionally, more than 90 countries — including key allies — are being subjected to “reciprocal tariffs,” adjusted individually based on trade imbalances with the U.S. China, one of America’s largest trading partners, is among the hardest hit.
Tech experts warn that for Apple, shifting production to the U.S. is not a viable short-term solution. “It’s not clear you can make a competitively priced smartphone here,” said Barton Crockett, senior analyst at Rosenblatt Securities. Wayne Lam of TechInsights added that the current $30 per unit assembly cost in China could increase tenfold if moved to U.S. soil.
Apple has not commented publicly on the potential impact of the tariffs or its response strategy. However, the escalating trade tensions are already causing concern across the global tech sector, where companies are heavily reliant on cross-border supply chains.
In response to Trump’s announcement, China has retaliated with a 34% tariff on all American imports, effective April 10 — mirroring the rate imposed by the U.S. The move marks a significant escalation in 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.”
Analysts warn that if the trade standoff continues, it could fuel inflation, dampen global demand, and slow economic growth. For consumers, the most immediate impact could be on their wallets — particularly when shopping for tech devices like the iPhone.
