Trump’s tariff warfare impacts us all – that is how a lot your iPhone will value now
Trump’s tariff war means everyone’s iPhone prices will skyrocket by hundreds of pounds as most of the devices are made in China – which has been hit by soaring tariffs
The cost of buying an iPhone will soar as Apple devices become caught in the fray of Trump’s embittered trade war. Most Apple devices are made in China, a country on which Trump has slapped tariffs totalling 145%.
Other parts come from almost 50 countries, which has led to fears of panic buying and rocketing price rises. Apple’s share price sank so much that it lost its title as the world’s most valuable company to Microsoft.
China assembles nine in 10 iPhones, and the country responded with its own high tariffs which will further destabilise the market. The Trump administration insists it could manufacture the devices on home soil rather than importing them from Asia.
President Trump last night announced a 90-day pause on tariffs, except for China due to their retaliation. The US tariff rate on Chinese imports now totals 145%, according to CNBC.
Experts said the cost of a £999 iPhone 16 Pro in Britain could rise by up to £4000 they told MailOnline.
But some US price rise predictions have been far higher, with some suggesting the cost of the devices could triple. It is likely that an increase in the US will be mirrored in the UK and elsewhere.
Apple has an incredibly complex supply chain with components sourced from across the globe, but particularly in East Asia.
China makes up 80% of iPhone assembly, India 10-15% and Vietnam the rest.
Camera components come from Japan, South Korea and Taiwan, while sensors and batteries come from Asia, France, Germany and the US.
Ben Barringer, global technology analyst at financial experts Quilter Cheviot told MailOnline: “The tariffs announced are going to have a profound impact on supply chains globally, and not just on US consumers.”
Dan Ives, global head of technology research at financial services firm Wedbush Securities, said the new iPhone could triple in price to $3,500 (£2,740) if produced entirely in the US.
Trump has signalled that the US could enhance domestic production of the device, bolstered by Apple’s decision to invest $500 billion to expand its US facilities over the next four years.
During Trump’s first term in 2018, CEO Tim Cook ensured Apple got an exemption for billions of dollars of imports of Chinese-made smartwatches and other various components.
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