Will iPhones get costlier after Donald Trump's 'Liberation Day' tariffs? Report claims...

US President Donald Trump's new reciprocal tariffs, which include a 10% base levy on all imports and country-specific rates, may cause major disruptions in global trade. According to reports, Apple’s iPhones could be among the most affected products.

Apple sells over 220 million iPhones annually, with key markets in the US, China, Europe, and India. Although the company has expanded production in India, most iPhones are still made in China, where the new tariffs have led to a massive 54% cumulative tax rate.

According to a Reuters report, Apple has two options: absorb the extra costs or pass them on to consumers. If the latter happens, iPhone prices could rise by 30-40%. For instance, the base model iPhone 16, currently priced at $799 in the US, may increase to $1,142. The premium iPhone 16 Pro Max, now at $1,599, could go up to nearly $2,300. Even the budget iPhone 16e, priced at $599, might see a hike to $856. Other Apple devices, like MacBooks, could also become more expensive.

Barton Crockett, an analyst at Rosenblatt Securities, noted, according to Reuters, “This whole China tariff situation is unfolding in a way we did not expect. We assumed Apple would receive special treatment like before.”

Apple’s troubles don’t end with tariffs. The company’s recent AI-powered features, including integration with ChatGPT, have not been enough to excite consumers. Many users are hesitant to upgrade, putting pressure on Apple’s financial performance.

Apple’s production in Vietnam and India has also been impacted by tariffs, facing rates of 46% and 26%, respectively. 

A steep price hike could dampen consumer demand and benefit rival brands like Samsung. This situation could give Samsung a competitive edge in the smartphone market.