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Trump tariffs could drive Apple iPhone price to $2,300

Published on April 04, 2025 at 07:24 PM

Analysts have cautioned that President Donald Trump’s sweeping tariffs on countries across the globe could significantly reshape the dynamics of international trade, particularly affecting consumer goods such as iPhones.

They suggested that with projected increases of between 30 per cent and 40 per cent, companies may have little choice but to pass on the additional costs to consumers.

According to Reuters, most iPhones are still manufactured in China, which has been hit with a 54 per cent tariff.

The outlet warned that if these tariffs remain in place, Apple could be forced to either absorb the additional costs or transfer the burden to its customers.

Rosenblatt Securities, cited in the report, estimated that costs could rise by as much as 43 per centâ€”assuming Apple chooses to pass those costs on to consumers.

The report also highlighted that Apple’s shares closed down 9.3 per cent on Thursday, marking their worst trading day since March 2020.

“Apple sells more than 220 million iPhones annually, with its largest markets being the United States, China, and Europe,”; it noted.

The report further explained that the base model of the iPhone 16, launched in the US with a retail price of $799, could soar to around $1,142 based on Rosenblatt Securities’ projections.

Meanwhile, the high-end iPhone 16 Pro Maxâ€”with a 6.9-inch display and 1 terabyte of storageâ€”currently retails at $1,599, but could cost nearly $2,300 if a 43 per cent price increase were to be passed on to consumers.