Don’t buy an iPhone until you see how the tariffs double the price. We do math

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President Donald Trump withdrew from his “reciprocal tariffs” this week, but he raised China’s commodity tax to 125% and imposed 10% tariffs on imports from other countries. Experts say you should expect to pay more for your next iPhone.

Trump announced a 90-day pause for all countries on his social media platform because they did not retaliate against their own tariffs. The only exception is China, where Apple produces most of the products, which reacts to every Trump tariff this year by increasing tariffs on U.S. products. The White House announced 125% tariffs on Wednesday, then clarified on Thursday that it was a 20% tariff imposed since February, raising tariffs on China to 145% this year.

If Apple goes to customers through Chinese tariff fees, the iPhone 16 Pro Max storage space could increase from $1,599 to nearly $3,600, assuming the previously imposed 20% tariff is already included in the current price.

This sticker shock will cause many of us to rethink buying a new iPhone, especially in the context of economic uncertainty. But, according to supply chain expert Joe Hudicka, Apple can offset the impact of tariffs through its services, including music, news and data plans.

“Apple will likely absorb some tariff costs ahead of time to keep sticker prices stable, and then gradually pass on its remaining price to consumers through service bundles, equipment life and ecosystem upgrades,” he said. “Consumers will still pay, just once.”

Apple has begun to transfer some of its manufacturing industries to other countries, including India and Vietnam. The countries were initially hit by their own “reciprocal tariffs” yesterday – Vietnam raised 46% interest rates and India rose 26% but were approved. However, they still face a 10% baseline tariff that came into effect last week.

Although experts do not expect an increase in tariffs of 1 to 1 with goods from China and other countries, you should expect an increase. However, it is not clear how much the exact tariffs will actually have on prices. If prices rise lead to a plunge in demand, experts say Apple and other producers can reduce Their prices remain competitive.

If you buy a new Apple device or imported gaming system on the market (such as the Nintendo Switch 2 or PlayStation 5 Pro), this is how tariffs can raise prices and what you should be preparing for.

How much can the tariffs on iPhone prices increase? We do math

If the full cost of the tariff is passed on to shoppers, we will see prices of Apple products made in China rise by 125%. Apple has moved some of its production to other countries, but most iPhones are still made in China.

If all tariffs are applied, it may affect the cost of the iPhone:

However, iPhones are much more expensive than just where they are made. Apple’s products come from a wide range of countries that may face higher tariffs after a pause. Tariffs on goods do not necessarily mean that prices will rise by the same amount. If companies want to stay competitive, they can absorb some costs to keep prices down.

“In terms of tariffs, it won’t be as expensive as one-to-one,” said Ryan Reith, vice president of IDC’s global device tracker suite group. “Mathematics is not as clear as tariffs.”

Will other technical products still see prices rising?

Smartphones are not the only devices that expect price increases due to tariffs. Best Buy and Target warned consumers last month that everything will be higher after the latest round of tariffs take effect. The tariff rate hike in February has prompted Acer to announce that it is raising the price of laptops.

Apple announced last month that it had cut $100 on its new MacBook Air last month, the day after the final round of tariffs came into effect. In an attempt to convince Trump to “exempt” the latest tariffs, Apple announced in February that it would expand its manufacturing operations in the U.S. in the next four years.

“They have promised $500 billion to the U.S. manufacturing industry and Apple has no carvings,” Key Financial certified financial planner and CEO Patti Brennan said in an email. “The price of its products is expected to double.”

However, regardless of the exact quantity, it is expected that China and other countries will convert tariffs on goods to higher prices for consumers. This means that the technologies you use every day, such as imported smartphones, laptops, TVs and kitchen utensils, may become more expensive this year.

What’s wrong with the tariffs?

Trump announced a 10% benchmark tariff on all imported goods and on April 2, which he called “liberation day.” He has long touted tariffs, even if the trade deficits and increased revenues to offset tax cuts, although many economists say tariffs could lead to higher prices and could ultimately harm the U.S. economy. Shares plummeted after Trump announced the news as the market was less responsive to the widespread tariffs.

Trump has taken a particularly firm stance on China, which has been subject to tariffs ordered by Trump in his first term in office. He began in February with a 20% tariff and then announced a 34% tariff on Chinese goods last week. He added another 50% tariff earlier this week, and then landed on a 125% tariff on China yesterday. After each Trump announcement, China responded with its own tariffs.

In theory, tariffs are intended to affect other countries financially because their goods are being taxed. The tariffs are paid for importing products from U.S. companies, and this UpCharge usually (but not always) transfers it to consumers at a higher price.

Should you buy technology now to avoid tariffs later?

If you are planning to buy a new iPhone, gaming console, MacBook or other technology, then buying it can save you money.

But if you don’t have cash on hand and need to use a credit card or buy it right away, pay later to avoid tariffs, experts say to make sure you have the money to pay before you can start generating interest. With the average interest rate on your credit card currently exceeding 20%, the cost of large purchase financing can quickly eliminate any savings you buy before the price rises due to tariffs.

“If you fund this fee on a credit card and cannot be fully paid in one to two months, you may end up spending more,” said Alaina Fingal, an accountant, founder of Organized Currency and a member of the CNET Currency Review Board. “I recommend you stop at any large purchases until the economy is more stable.”

Even if prices rise, one way to save on Apple products is to buy last year’s model instead of the latest or used one.

“Apple tends toward this situation with a certified renovation program, just like the used car model in the automotive industry,” Hudicaka said. “The program helps extend the life of the device, allowing customers in the Apple ecosystem to spend longer while distributing costs over time.”