Tariffs could affect iPhone prices in the fall
The lack of strategy in the Trump administration’s execution of tariffs continues, as the President promises to “set the tariff” on entities that don’t make deals in the “next couple of weeks.”
After historic ups and downs in the market, things flattened out a bit while President Trump paused the extreme tariffs levied on “Liberation Day.” Markets actually closed slightly up on Wednesday due to signs of the US planning to ease pressure off of China, but that stress relief has only lasted a few hours as things have changed again.
According to a report from CNN based on remarks President Trump made in the Oval Office on Wednesday evening, the 90-day pause will end sooner for select entities. Specifically, any country or company not actively trying to reach a deal with the Trump administration, or those unable to accept offered terms of a deal, will have tariffs set for them.
“In the end, I think what’s going to happen is, we’re going to have a great deals, and by the way, if we don’t have a deal with a company or a country, we’re going to set the tariff,” Trump said. “I’d say over the next couple of weeks, wouldn’t you say? I think so. Over the next two, three weeks. We’ll be setting the number.”
The 90-day pause began on April 9, so it has barely been 24 days, and two to three weeks more would be barely over the halfway point. So, some tariffs may spike from the set base of 10%, which is already historically high by magnitudes, to as much as 50% for some countries.
There is no way to tell which companies or countries President Trump is referring to. His administration claimed as many as 90 countries had entered negotiations before his 90-day reprieve, but that number shifted to 15 a few days later.
Apple has some reprieve from this uncertainty thanks to exemptions, but it isn’t totally free from worry. Many devices and accessories are manufactured around the world outside of China, and any increase in tariffs will affect those products.
That, and Apple’s exemptions are set to end within a few weeks, or perhaps days, as well. Plus, on top of 125% tariffs in China and escalating tariffs on countries around the world, a separate semiconductor tariff will affect Apple products as well.
Supply chain inventory and careful planning have saved Apple from raising product prices so far, but that could change if more permanent tariff relief doesn’t arrive soon. The iPhone 17 lineup expected in the fall could see significant price jumps depending on how Apple absorbs these costs.
