Expert warns prices of iPhones will surge to an eye-watering price due to Trump tariffs
The implementation of tariffs imposed by President Donald Trump continue to cause chaos, with an expert now warning that the price of iPhones will surge to new heights as a result.
On Wednesday (April 2), the 47th POTUS announced a 10 percent ‘baseline’ tax would apply globally - with higher rates for a 60-strong country list dubbed as Trump’s ‘worst offenders’.
The new tariffs came during a White House Rose Garden Address on what Trump dubbed ‘Liberation Day’ for the United States, as a 25 percent tariff was also slapped on all foreign-made automobiles.
Trump also announced reciprocal tariffs on dozens of so-called 'worst offenders', which saw China hit with a total tariffs of a staggering 54 percent.
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Dan Ives, who is an analyst at Wedbush Securities, has warned Trump's tariffs could lead to new iPhones costing a whopping $3,500 each.
To put that into context, the most expensive smartphone from Apple, the iPhone 16 Pro Max, retails at $1,199.
As per the Daily Mail, Ives said: "For US consumers, the reality of a $1,000 iPhone being one of the best-made consumer products on the planet would disappear.
"It speaks to our point that if consumers want a $3,500 iPhone, we should make them in New Jersey or Texas or another state... the concept of making iPhones in the US is a non-starter in our view at $1,000."
Ives added in an email provided to the Mail: "Making Apple products and iPhones in the US sounds great behind the microphones in the 202 area code... but in reality they are a fantasy tale that in our view will never happen..... and if they are produced in the US will be 2x-3x more expensive.
"It's the reality of the US labor market, developing and building a tech factory, chips being in Asia, and having the right skilled workers and engineers to operate a complex manufacturing arm such as Apple.
"Apple can produce certain products in the US like high-end Macs and some other hardware components...but these tariffs in their current form are a shut-off valve for US consumer sales or risk prices going up to levels that are hard to digest."
UNILAD has contacted Apple for comment.
Following tariffs introduced by the Trump Administration, many countries have retaliated.
Starting from April 10, China will add a 34 percent tariff on US goods, with Trump swift issuing a response.
He penned on Truth Social: "CHINA PLAYED IT WRONG, THEY PANICKED - THE ONE THING THEY CANNOT AFFORD TO DO!"
Topics: Donald Trump, iPhone, Apple, Technology
Callum Jones