U.S. President Donald Trump this week announced that steep tariffs will be applied to imports from numerous countries, starting April 9. Products imported to the U.S. from China will be subject to a 54% tariff, which will greatly increase the price of Apple’s iPhone, as the company assembles the lion’s share of its iPhones in China.
Reuters reports that analysts at equity research firm Rosenblatt Securities say the tariffs could result in iPhone prices increasing by as much as 43% in the U.S.
That means Apple’s top-of-the-line iPhone 16 Pro Max model with 1TB of storage could rise in price from $1,599 to close to $2,300 in the U.S., should Apple raise prices by 43% to fully offset the cost of tariffs.
The most affordable iPhone, the iPhone 16e, would increase in price from $599 to just over $850 with a 43% price increase.
Apple would need to raise its prices by at least 30% on average, in order to offset the tariffs, according to Counterpoint Research’s Neil Shah.
Apple has not yet publicly commented on the tariffs, so we don’t know if or when the Cupertino firm will actually raise prices. Apple could find ways to offset the impact of the tariffs, such as moving more iPhone production to other countries, like India, although it is unknown exactly how much production could be increased in Apple’s Indian production facilities.
Apple’s stock price has plunged nearly 15% since President Trump announced the upcoming tariffs.
