Tariffs from the US may cause the price of new iPhone models to surpass $2,000

Apple customers may soon have to pay more than $2,000 for new iPhones as the US struggles with possibly debilitating tariffs.

Analysts said that Donald Trump’s broad tariffs on international commerce might raise the cost of consumer items like iPhones by 30% to 40%. Apple must decide whether to absorb the expenses or pass them on to customers because the majority of iPhones are built in China, which is subject to a 54% tax.

On Thursday, Apple’s stock fell 9.3%, the most since March 2020. According to analysts at Rosenblatt Securities, a 43% tariff increase may cause the iPhone 16, which is now priced at $799, to soar to $1,142. Price increases could push even the more expensive iPhone 16 Pro Max up to about $2,300.

“This whole China tariff thing is playing out right now completely contrary to our expectation that American icon Apple would be kid-gloved, like last time,” said Barton Crockett of Rosenblatt. In the meantime, a 43% increase in tariffs may raise the price of Apple’s new iPhone 16e, which is currently $599, to $856.

Although Apple has moved some of its manufacturing to Vietnam and India, these nations are also subject to levies. According to Neil Shah of Counterpoint Research, Apple could have to increase prices by at least 30% in order to compensate for these import taxes. Analysts worry that a significant price increase might damage Apple’s bottom line and give rivals like Samsung an advantage, as consumer demand is already stagnant.