Apple Faces Tariff Threats and Plans Price Hikes for iPhone Lineup
President Donald Trump has issued a stark warning to Apple, threatening to impose a 25% tariff on iPhones manufactured outside the United States unless the company shifts production of its flagship devices to American soil. In a social media post on Friday, Trump stated, “I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the US”. The announcement immediately impacted Apple’s stock, which dropped by over 2% in premarket trading.
The proposed tariff could significantly drive up iPhone prices for U.S. consumers. According to industry projections, an entry-level iPhone 15 (128GB) currently priced at $699 could cost as much as $1,136 after the new tariff is applied, depending on how Apple decides to pass the costs to customers. Apple has already been absorbing some tariff-related costs, with CEO Tim Cook recently acknowledging $900 million in additional expenses for the current quarter, but the company may soon be forced to raise prices to maintain profit margins.
Meanwhile, Apple is reportedly preparing to increase prices for its upcoming iPhone 17 lineup, set to debut this fall. Rather than directly attributing the price hikes to tariffs, the company is expected to justify the increases by pointing to new features and design changes. Analysts suggest that Apple is wary of explicitly blaming tariffs for the price rises, likely to avoid political backlash. Instead, the company may introduce new artificial intelligence features, enhanced hardware, or increase baseline storage options to rationalize higher prices.
Looking ahead, Apple is preparing for a “product renaissance” by 2027, with plans to launch a foldable iPhone, a special 20th-anniversary iPhone featuring a glass-heavy design, smart glasses, and advanced AirPods and Apple Watch models. These innovations are aimed at reinvigorating the brand and maintaining its competitive edge in a rapidly evolving tech landscape.
In summary, Apple is confronting significant pressure from both trade policy and market expectations. While the company navigates the challenges of tariffs and shifting production, consumers may soon face higher prices and a wave of new Apple products in the years to come.