iPhone lovers may soon have to dig deeper into their
wallets, as former US President Donald Trump’s proposed ‘Liberation Day’ tariff
policy could sharply increase the prices of Apple products — especially the
iPhone — across global markets, including the United States and possibly India.
What Are the ‘Liberation Day’ Tariffs?
Trump’s new trade strategy includes:
- A 10%
baseline tariff on all imports, and
- Country-specific
tariff rates, with China being hit the hardest — a whopping 54%
cumulative rate.
Since Apple still manufactures a majority of its iPhones
in China, the company stands to lose big. While Apple has expanded
production to India and Vietnam, those countries are also facing new tariffs of
26% and 46%, respectively.
How Will This Impact iPhone Prices?
If Apple passes the cost of tariffs on to customers — which
analysts say is likely — we could see price hikes of up to 30-43% on
iPhones and other Apple products.
Here’s what that could look like:
|
Model |
Current
Price (US) |
Estimated
New Price (after 43% hike) |
|
iPhone 16e |
$599 |
~$856 |
|
iPhone 16 |
$799 |
~$1,142 |
|
iPhone 16 Pro
Max |
$1,599 |
~$2,300 |
According to Rosenblatt Securities, the tariffs could
cost Apple up to $40 billion. The impact has already spooked investors —
Apple’s stock fell by 9.3%, marking its worst performance since March
2020.
What Choices Does Apple Have?
Apple now faces a difficult decision:
- Absorb
the additional cost, which could reduce its profit margins
significantly.
- Pass
the cost to customers, risking a drop in demand.
- Speed
up diversification, shifting more manufacturing out of China and into
countries like India and Vietnam — though these too are affected by
Trump’s tariff rates.
During Trump’s previous term, Apple received a waiver
from similar tariffs. This time, no such relief has been granted.
Could Samsung Gain the Upper Hand?
Yes — and this is critical. Samsung, Apple’s top competitor,
manufactures most of its phones in South Korea, which faces a lower
tariff rate of 25%. This could make Samsung devices more
price-competitive in global markets, especially in the US.
What Does This Mean for Indian Consumers?
Although India now manufactures about 14% of Apple’s
global iPhones, most units are still exported. With Indian production also
facing 26% US tariffs, price hikes could indirectly affect Indian buyers as
well — especially for imported models or premium variants not yet made in
India.
Conclusion
Trump’s new tariff policy has thrown a curveball at Apple —
threatening higher product prices, potential losses, and increased competition
from brands like Samsung. If Apple can’t absorb the extra costs, expect iPhones
to become significantly costlier — a move that might dampen consumer interest
and reshape the premium smartphone market.
Bottom line: If you're planning to buy a new iPhone —
you might want to do it sooner rather than later.