The new tariff on imports means that you will have to pay more for electronic devices right away.
A temporary grace period may take longer due to the increased tariff-induced prices on iPhones and other electronic devices.
Earlier this month, President Donald Trump hiked tariffs on 145% of the goods from China, where Apple produces most of its products. But he’s finished Exemption Smartphones and some other electronic devices from his “mutual tariffs” leave 20%.”Fentanyl Tax“In place. White House officials said the grace from additional tariffs is temporary.
Regardless of what the final tariff amount is, you should expect to pay more for your next iPhone. If Apple handed over 145% of China tariff costs to customers, the iPhone 16 Pro Max with 1TB of storage could increase from $1,599 to more than $3,900. At 20% tariffs, the same iPhone could increase to over $1,900.
Experts say electronic prices are likely to start to rise after electronic prices are shipped before customs duties and sell out from current supply where more expensive devices begin to arrive.
“The best equipped companies that supply the US, whether they are based in the US, have probably two to three weeks of stock in their hands at best,” said Ryan Reith, group vice president of IDC’s global device tracker suite, including mobile phones, tablets and wearables in an interview with CNET.
Apple may have a slightly larger spare. According to customs data, India’s largest suppliers, Foxconn and Tata, shipped nearly $2 billion in iPhones in March. Review by Reuters this week. The tech giant ordered phones to be airlifted before Trump’s tariffs were expected to begin.
Additionally, experts do not expect costs to rise on a one-to-one basis with goods from China or tariffs from other countries, but they should expect an increase. If you’re in the market for newer Apple devices and imported gaming systems, such as the Nintendo Switch 2 or PlayStation 5 Pro, here’s how the rates will raise prices and what to do to prepare.
How much can the iPhone price increase due to customs duties? We do math
If shoppers were given the full cost of the tariff, they could see a price increase of 20% to 145% for Apple products produced in China over the next few months. Apple has moved some of its production to other countries, but most iPhones are still manufactured in China.
Here’s how Trump’s current “fentanyl tariffs” will affect iPhone costs:
Is tariffs how to raise prices on iPhones?
Current price | Fentanyl tariff (20%) | Potential price | |
---|---|---|---|
iPhone 15 (128GB) | $699 | $140 | $839 |
iPhone 15 Plus (128GB) | $799 | $160 | $959 |
iPhone16e (128GB) | $599 | $120 | $719 |
iPhone 16 (128GB) | $799 | $160 | $959 |
iPhone16Plus (128GB) | $899 | $180 | $1,079 |
iPhone16Pro (128GB) | $999 | $200 | $1,199 |
iPhone16Pro Max (256GB) | $1,199 | $240 | $1,439 |
iPhone16Pro Max (1TB) | $1,599 | $320 | $1,919 |
However, there are more prices on iPhones than they are simply manufactured. Apple sources components of its products from a long list of countries and could face higher tariffs after a suspension. Also, customs duties on goods do not necessarily mean that prices will rise at the same amount. If a company wants to stay competitive, it can absorb some of its costs to lower prices.
“It’s not as high as one-on-one in terms of increased tariffs,” Lease said. “Mathematics is less clear about tariffs.”
When will prices go up?
It is unclear exactly when the price will rise, but if a company sells out from a device produced before the tariffs, they will likely need to raise the price of the customs freight product. However, supply chain experts say Apple has a way to offset the impact of tariffs through services that include music, news and data plans. Joe Fudica.
“Apple will absorb some of the tariff costs ahead of time to stabilize sticker prices, then gradually hand over the rest to consumers through service bundles, device lifespan and ecosystem upgrades,” he said. “Consumers still pay, but not everything at once.”
Apple has also begun moving parts of its manufacturing industry to other countries, including India and Vietnam. These countries were originally hit by their own “mutual tariffs” – Vietnam accompanied by a 46% increase and India increased by 26% – but were repeated. However, they still face 10% baseline tariffs that came into effect this month.
It is also unclear exactly how much the tariffs actually affect prices. If demand plummets due to rising prices, experts point out that Apple and other producers can do it reduce Prices to stay competitive.
Will other high-tech products also see price increases?
Smartphones aren’t the only devices that are expected to raise prices due to tariffs. Best Buy and Target warned consumers last month to expect all prices to rise after the latest tariffs came into effect. A customs hike in February had urged Acer to announce that it was increasing the price of its laptop. Top Tech Brand Anker has recently begun to raise prices in response to customs duties.
Last month, Apple announced price reductions for its new MacBook Air. What was widely seen as an attempt to persuade Trump to “cut open up” the latest tariff exemption, Apple announced in February that it would spend more than $500 billion over the next four years. Expanding manufacturing operations in the US.
However, regardless of the exact amount, you should expect tariffs on goods from China and other countries to be converted into increased consumer prices. This means that daily technologies, such as imported smartphones, tablets, laptops, TVs, and kitchen appliances, can become even more expensive this year.
See this: Buy or Waiting Guide: How tariffs change high-tech prices and what to do next
What’s going on with the tariffs?
Trump announced “mutual tariffs” on April 2nd on imports from more than 180 countries, in addition to a 10% baseline tariff on all imports. Many economists say tariffs can lead to higher prices and hurt the US economy, but he has long been touted as a way to raise revenues, even in the trade deficit. Stock prices plummeted after Trump’s announcement as the market responded poorly to drastic tariffs.
Trump has taken a particularly harsh stance on China, which has already been subject to the tariffs he ordered during his first term. He began in February, imposing 20% on tariffs and announced a 34% tariff on goods from China last week. Last week he added an additional 50% tariff before finally landing on 145% tariffs on China. China responded with its own tariffs after each Trump announcement.
US Customs and Border Protection listed several important appliances that were exempt from mutual tariffs last week, but the Trump administration said these products would instead be subject to “semiconductor tariffs.”
In theory, tariffs are designed to have a financial impact on other countries as the goods are taxed. Customs duties are paid by the US company that imports the product. This upcharge is usually passed to consumers in the form of a higher price, but not always.
Should I buy high tech now to avoid tariffs later?
If you are planning to buy a new iPhone, gaming console, MacBook, or other technology, buying now can save you money.
However, if you don’t have cash on hand and you need to use a credit card or buy now, then simply plan later just to avoid customs duties, and experts make sure you have money to cover the costs before starting interest. Currently, the average interest rate on credit cards is above 20%, so the cost of funding large purchases can quickly wipe out the savings you get from buying before the price goes up due to the fee.
“If you fund this cost with a credit card and you can’t pay the full amount in a month or two, the tariffs will pay you more than it costs,” said Alaina Fingal, founder of organized money and a member of the review committee for CNET Money Experts. “We recommend suspending large purchases until the economy is more stable.”
One way to store your Apple product is to buy last year’s models instead of the latest release or second hand items, even if prices rise.
“Apple is leaning towards it with a certified, renovated program, just like used car models in the automotive industry,” says Hudicka. “This program will help you distribute the cost impact over time while extending device lifespan and keeping customers in the Apple ecosystem.”