iPhone prices under pressure as Trump threatens 104% tariff on China

President Donald Trump has announced a new tariff threat against China, escalating the trade war between the two countries.

If China does not cancel the 34% tariff it recently imposed on U.S. imports in response to previous tariffs, Trump plans to increase the total tariff on Chinese imports to a staggering 104%. This would have significant implications for products like Apple’s iPhones, which are mostly manufactured in China.

For example, if Apple were to pass on the full 104% import tax to customers, the price of the iPhone 16 Pro Max (1TB) could skyrocket from $1,599 to $3,262. Even the more affordable iPhone 16e would see a substantial price increase from $599 to $1,222 for the 128GB version.

While Apple is unlikely to pass on the entire import tax to customers, higher pricing for U.S.-based customers is still expected. The company is exploring various strategies to mitigate the impact of the tariffs, including negotiating with suppliers to lower prices and diversifying its supply chain to countries with lower tariffs.

Apple is also reportedly stockpiling inventory to maintain current pricing while hoping for a resolution in the U.S.-China trade dispute. The company may also seek a tariff exemption for its products through discussions with Trump officials.

Overall, the escalating trade tensions pose challenges for Apple and its CEO Tim Cook, who are working to navigate the complex economic landscape and maintain competitiveness in the market.