iPhone Prices Could Soar To Almost $2,300 Due To Trump Tariffs If Apple Decides To Pass On The Costs To Buyers

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