President Donald Trump’s new sweeping tariffs on US imports sparked fears of trade wars and threatened to raise prices on everything we buy, including Apple products.
The cost of the latest tech seems to rise every year, but experts warn that smartphone and laptop prices could climb even higher because of the massive tariffs this year.
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Yesterday, in addition to imposing tariffs on goods from nearly 200 countries, Trump announced he was adding a 34% tariff to goods from China, where Apple produces the majority of its products. He had already increased tariff rates on China by 20% since February.
Experts expect that the cumulative 54% tariff hike will raise prices for Apple products manufactured in China, including iPhones, iPads, MacBooks and AirPods, but not necessarily at the same rate.
“The tariffs could increase Apple product prices by about 10% in the coming months, which could lead to price increases of $50 to $150 on higher-end products like the iPhone Pro Max models and MacBook Pros,” Stephan Shipe, a certified financial planner and CEO of Scholar Financial Advising, said in an email.
Target and Best Buy warned consumers last month to expect higher prices for everything, after the latest round of tariffs went into effect. Last month’s tariff hike had already prompted Acer to announce that it was raising prices on its laptops.
If you’re in the market for a new Apple device or an imported gaming system, like the Nintendo Switch 2 or PlayStation 5 Pro, here’s how tariffs could raise prices, and what you should do to prepare.
What’s going on with tariffs?
Trump announced a 10% baseline tariff on all imports plus “reciprocal tariffs” on imports from more than 180 countries April 2, which he dubbed “Liberation Day.” He’s long touted tariffs as a way to even the trade deficit and improve the US economy, although many economists say that tariffs could lead to higher prices and may end up hurting the US economy. After Trump’s announcement yesterday, US stock prices plummeted today as markets reacted poorly to the sweeping tariffs.
Trump has taken an especially hard stance on China, which was already subject to tariffs that Trump ordered during his first term in office. The latest round of tariffs means prices for these goods could rise even higher. China has responded to each round of tariffs with its own set of tariffs on US products, including coal, crude oil and farm products such as chicken, beef, soybeans, wheat and pork.
Tariffs, in theory, are designed to financially impact other countries because their goods are being taxed. Tariffs are paid by the US company importing the product, and this upcharge is usually — but not always — passed on to the consumer in the form of higher prices.
How much could iPhone and MacBook prices increase?
Tariffs levied on products from China — and everywhere else — will likely translate into higher prices for consumers. That means the tech you use every day, like imported smartphones, tablets, laptops, TVs and kitchen appliances, could get even more expensive this year.
If the full cost is passed on to shoppers, we’d see a 54% increase in prices on Apple products produced in China. Apple has moved some of its production to other countries, including India, Malaysia and Vietnam. But they were each hit with their own tariffs yesterday — Vietnam saw a 46% tariff hike. Apple also sources components for its products from a long list of countries, all now facing new tariffs.
If Apple did raise its prices in direct proportion to this year’s Chinese tariff hikes, the iPhone 16, which starts at $830 at T-Mobile, could jump up to $1,278. You can get a 15-inch MacBook Air starting at $1,199 on Amazon; a 54% hike would raise the base price to $1,846.
However, a tariff on goods doesn’t necessarily mean prices will go up by the same amount. If companies want to stay competitive, they could absorb some of the costs to keep their prices lower.
Apple announced a $100 price cut on its new MacBook Air last month, a day after the last round of tariffs took effect. In what was widely viewed as an attempt to persuade Trump not to impose the latest tariffs, Apple announced last month that it would spend more than $500 billion in the next four years to expand manufacturing operations in the US.
“Apple has positive earnings to absorb the higher prices on many of its products, but not all,” Patti Brennan, certified financial planner and CEO of Key Financial, said in an email. “Apple’s most important product is the iPhone. Readers should expect price increases either directly or indirectly. How much remains to be seen.”
Read more: Higher Tariffs Could Make Going Solar More Expensive
Should you buy tech now to avoid tariffs later?
If you were planning on buying a new iPhone, gaming console, MacBook or other tech, buying it now could save you money.
But if you don’t have the cash on hand and plan to use a credit card or buy now, pay later plan just to avoid tariffs, experts say to make sure you have the money to cover the costs before you start accruing interest. With credit cards’ average interest rates currently more than 20%, the cost of financing a big purchase could quickly wipe out any savings you’d get by buying before prices go up because of tariffs.
“The decision to buy would depend on immediate need vs. a tolerance for a small potential price increase,” Shipe said.
One way to save, even if prices go up, is to buy last year’s model instead of the newest release.
“If you aren’t planning to upgrade in the next year, there is no need to rush out to buy a new smartphone,” Shawn DuBravac, chief economist at IPC, a manufacturing trade association, said in an email. “Technology is naturally deflationary, meaning that over time performance goes up and prices generally go down for products of similar quality.”
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