Get ready to pay more than $ 2000 for a new iPhone: Experts say 125% Trump fare in China is a “full Apple disaster” like “Armageddon”

Business news

April 10, 2025

Trump is stepping up a trade war with China Requiring tariffs for Chinese goods up to 125% – a number that is not good for Apple And US consumers.

American Stock Market Bounced on Wednesday after lunch that President Donald Trump paused his plans For large -scale tariffs for goods from about 180 countries.

However, this relief may just be temporary for companies that rely on the exchange of goods between the US and its third largest trading partner China. In the same Truth social post On Wednesday, Trump announced that it raised tariffs for China to a colossal 125% – on a planned 34% last week – to refuse to abandon mutual tariffs for US goods.

For investors in companies such as Apple, which can mark a temporary jump on stock prices (in just a few minutes, $ AAPL increased by double digits), bitter just start working. According to Jeff Fieldhak, the director of the CONTROPOINT Research, which specializes on Apple, 125% tariffs in China are likely to be transferred directly to consumers.

The last iPhone 16 Pro Apple is sold for $ 999. If Trump does not go down from the place in its tariffs, the price may be closer to $ 2250, Fieldhack says Wealth.

While stocks will postpone this impetus to consumers by the end of the summer, he said, demand almost certainly refuse if Americans choose priorities in other goods than new smartphones.

Apple greatly relies on China – and there is no simple exit

Apple produces and collects 90% of its iPhones in China, and, according to Wedbush, it must lose the most any technology campaign in the world in the trade war between the US and China.

“The tariff economic Armageddon, unleashed by Trump, is a complete disaster for Apple, given its large -scale exposition in China,” Wedbush analysts wrote on Sunday.

If Apple was doing what Trump’s ultimately dreams – produces iPhone exclusively in America – the average cost of a new phone could be close to $ 3,500, which is more than three times the current price. Even the move 10% of the Apple supply chain in the US will be a three -year process that will cost $ 30 billion, the Wedbush estimated.

“It’s just impossible to have a mass consumer electronic production in the US,” Fieldhack said.

As reported Financial times. Imports from India are still faced with Tariff on 26%.

Apple rates on China for decades, partially thanks to Tim Corn

Apple’s hope from China is not by accident. In fact, the current CEO of the company, Tim CookHe was an instrumental participant in solidifying the company’s presence in China, previously managed Apple at the end of the supply network.

He detach Wealth In 2017 The fact that the company continued to invest in China was not due to work costs.

https://www.youtube.com/watch?v=_ng8xq-sngc

“The popular concept is that companies come to China for low work costs. I am not sure what part of China they go, but China has stopped being a low work country many years ago,” Cook said.

Instead, he said, this is due to the quality of people and their skills, pointing to the professional examination of Chinese workers.

Ultimately, you still have to find out what the Trump tariff effect will have on the Apple supply chain in the long run. Apple pledged to spend 500 billion dollars expanding to the US Over the next four years, including the new Texas factory. But if the past comments of the chicken are some signs, it makes his voice hear – even if at once behind closed doors.

“I believe you are and you are involved, you get in the arena because nothing is changing from the sidelines,” he said.

Originally this story was presented on Fortune.com