Trump Tariffs Could Spike iPhone Prices To Almost $2,300 If Apple Decides To Pass On The Costs To Buyers – Apple (NASDAQ:AAPL)

President Donald Trump has enacted sweeping tariffs that could significantly increase the cost of consumer goods, including Apple Inc. AAPL iPhones. Analysts foresee a potential price surge of 30% to 40% if Apple passes these costs onto consumers.

What Happened: According to a report by Reuters, most iPhones are manufactured in China, which now faces a 54% tariff.

If these tariffs persist, Apple must choose between absorbing the increased costs or transferring them to customers. Apple shares dropped 9.3% on Thursday, marking their worst day since March 2020.

Projections from Rosenblatt Securities suggest that Apple’s iPhone 16, initially priced at $799, could rise to $1,142. The iPhone 16 Pro Max, currently $1,599, might reach nearly $2,300 with a 43% price hike.

Despite some production shifting to Vietnam and India, these countries also face tariffs of 46% and 26%, respectively.

See Also: Former Microsoft CEO Steve Ballmer Says Trump’s New Tariffs Could Spark Global Turmoil, Hurt Consumers As Satya Nadella-Led MSFT’s Stock Drops 14% YTD

Analysts like Angelo Zino from CFRA Research propose that Apple might delay significant price increases until the iPhone 17 launch in the fall.

Why It Matters: The tariffs imposed by President Trump have far-reaching implications beyond just consumer electronics.

Former Treasury Secretary Larry Summers described these tariffs as the “most expensive and masochistic” decision by the U.S., potentially costing the economy $30 trillion, or about $300,000 per family.

Additionally, the automotive sector is expected to face significant challenges. Experts predict that the tariffs could increase car prices by $12,000, negatively impacting auto sales.

The tariffs, which include a 25% duty on imports from Mexico and most goods from Canada, excluding energy-related items, are part of a broader strategy that could have substantial repercussions for American businesses and consumers.

Price Action: Apple’s stock has declined nearly 25% year-to-date, closing at $188.38 on Friday, according to Benzinga Pro data.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Apple