The iPhone could soar in price as the device gets caught in the crosshairs of Donald Trump’s tariff war, write Ryan Hooper and Ben Green.
Nothing encapsulates the dispute better than the phone, with 47 countries involved in making the device.
President Trump’s imposition of global tariffs has prompted concerns Apple’s signature smartphone could triple in price Stateside due to nine in ten of them being assembled in China.
Mr Trump piled pressure on Apple yesterday to keep shifting the manufacture of its products back to the US.
He posted on his Truth Social network: “This is a great time to move your company into the US, like Apple, and so many others, in record numbers, are doing.
“Zero tariffs, and almost immediate electrical/ energy hook ups and approvals. No environmental delays. Don’t wait do it now!”
China was hit by a new 125% import levy last night while Mr Trump brought all other countries down to 10% for the next 90 days.
Experts believe the trade battle could result in buyers having to pay an extra $510 (€465) for the new iPhone 16 Pro device.
The White House said it was prepared to fire-up iPhone production in the States, though it would still need to source components from Canada, Europe, Africa and the Far East.
Taiwan’s chipmaker TSMC produces the iPhone’s Apple-designed processors, which, if tariffs are reintroduced at their original level, would attract a 32% levy if imported directly to the US. Samsung and LG – firms based in South Korea – provide most of the screens.
Camera components come from Japan, South Korea and Taiwan, while sensors and batteries come from the Far East, France and Germany.
Analysis of Apple documents shows 84% of iPhone component suppliers have production in China, at 158 out of 188 suppliers.
Experts say it is unlikely Apple will set different price points around the world.
Ben Barringer, global technology analyst at Quilter Cheviot, said: “It’s hard to say how much a new iPhone will cost... things are changing every day.
“Trump’s tariffs are ultimately bad news for consumer electronics.”
