US President Donald Trump has imposed a series of sweeping tariffs on countries around the world that could significantly alter the global trade landscape, Reuters reports.
► Read the telegram channel “Minfina”: main financial news
Among the most vulnerable items could be consumer products, particularly the iPhone, which could see its price rise by 30-40% if the company passes on costs to consumers, analysts say.
Most iPhones are still made in China, which has been hit with a 54% tariff. If those duties remain in place, Apple will face a tough choice: either absorb the extra costs or pass them on to consumers.
The company's shares fell 9.3% on Thursday, marking their worst day since March 2020.
Apple sells more than 220 million iPhones a year, with its largest markets including the United States, China and Europe.
According to analysts at Rosenblatt Securities, the cost of all iPhones could increase by 43%. How will this affect prices:
- The base iPhone 16 model launched in the US at $799, but its price could rise to $1,142. The more expensive iPhone 16 Pro Max with a 6.9-inch display and 1 terabyte of storage, which currently sells for $1,599, could cost almost $2,300. The cheapest iPhone 16e, which currently starts at $599 in the US, could go up to $856.
At the same time, other Apple equipment may also increase in price:
- Apple Watch – by 43%; iPad – by 42%; Mac – by 39%; AirPods – by 39%.
Will iPhones become more expensive in Ukraine?
Oleg Pendzin, a member of the economic discussion club, stated on the Kiev TV channel that the increase in iPhone prices will not affect Ukrainians.
This is due to the fact that smartphones are imported to Ukraine directly from China or Taiwan.
“Our iPhones do not go through America. Our iPhones go directly. That is, we receive them without any customs restrictions,” the expert noted.
Can Apple Avoid Price Increases?
During his first term, Trump already imposed tariffs on Chinese imports to encourage companies to move production to the U.S. or neighboring countries like Mexico. Apple managed to get some exemptions then, but there have been no such exceptions this time around.
Even though Apple has moved some of its production to Vietnam and India, these countries have also received new tariffs from the US – 46% for Vietnam and 26% for India.
According to Counterpoint Research co-founder Neil Shah, Apple must raise prices by at least 30% on average to offset import duties.
Let us recall
US President Donald Trump announced the introduction of duties on all goods imported from abroad. The Republican announced this on Wednesday, April 2, at a press conference in the White House garden. The basic tariff will be 10%, but for many countries it turned out to be higher.
Customs duties on goods from China will be 34%, from EU countries – 20%, from Switzerland – 31%, from Great Britain – 10%, from Ukraine – 10%, from Israel – 17%, from Kazakhstan – 27%. One of the highest duties is imposed on Vietnam (46%), Cambodia (49%), Laos (48%). Russia is not mentioned in the list.
🕵️ We created a short survey to learn more about our readers.
💛💙 Your answers will help us become better, pay more attention to the topics that interest you.
🤗 We would be grateful if you could take a minute to answer our questions.