Full Article: Could iPhones Really Cost $3,500 With Trump’s Tariffs? We Do the Math
The CNET article titled “Could iPhones Really Cost $3,500 With Trump’s Tariffs? We Do the Math” delves into the potential financial impact of President Trump’s new tariff policies on consumer electronics, particularly iPhones. With tariffs on Chinese imports reaching up to 145%, the article explains that the increased costs would likely be passed on to consumers, potentially raising the price of high-end iPhones to as much as $3,500 if manufacturing were moved to the U.S. The piece also discusses the broader implications of these tariffs, including potential inflation, increased costs for a wide range of goods, and the challenges companies face in adjusting their supply chains. Ultimately, the article suggests that consumers may experience significant price hikes on electronics and other imported goods as a result of these trade policies.
Five Key Takeaways from the CNET Article
- Tariffs Could Exponentially Raise Electronics Prices – If tariffs on Chinese-made electronics components reach 145%, the cost of manufacturing and importing could skyrocket—especially if companies choose to move production to the U.S.—leading to dramatic retail price increases.
- iPhones Might Cost Up to $3,500 – The article estimates that, under worst-case scenarios where Apple absorbs no extra costs and shifts production to the U.S., a high-end iPhone could be priced at over $3,500 due to elevated labor and assembly costs.
- Companies Will Likely Pass Costs to Consumers – Instead of eating the tariff-related expenses, most tech companies are expected to pass on at least part of the cost to buyers, making everyday electronics significantly more expensive.
- Domestic Manufacturing Is Not Cost-Effective – Producing iPhones in the U.S. would dramatically increase labor and logistics costs, and would take years to scale up, making it an impractical short-term solution.
- Inflation and Economic Ripple Effects Are Likely – Beyond smartphones, the tariffs could increase costs for laptops, game consoles, and appliances—potentially contributing to broader inflation and reshaping consumer spending.