Technologies

Will the iPhone Really Cost More Than $3K After Trump’s Tariffs Start Tomorrow?

The White House says a 104% tariff on China will start Wednesday. But experts advise against panic-buying if it puts you in debt.

Amid an escalating trade war between President Trump and China, expect to pay more for your next iPhone or Apple product — a lot more, experts say.

“Trump is playing hardball with China, which is unsettling on many levels,” Patti Brennan, certified financial planner and CEO of Key Financial, said in an email. “As for Apple, expect the prices to double for their products.”

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Trump announced yesterday an additional 50% tariff on goods imported from China, which would raise the total tariff rate on that country to 104%. The tariffs will go into effect starting Wednesday, White House press secretary Karoline Leavitt said in a briefing today.

In addition to imposing tariffs on goods from nearly 200 countries, Trump announced last week that he was adding a 34% tariff to goods from China, where Apple produces most of its products. Trump has already increased tariff rates on China by 20% since February.

If the price of Apple’s top-of-the-line iPhone 16 Pro Max went up 104%, it could increase from $1,599 to more than $3,200.

But it’s unclear exactly how much of an impact the tariffs will actually have on prices. If rising prices cause demand to plummet, experts noted that Apple and other producers could reduce their prices to stay competitive.

Others say Apple could absorb more costs early on to stay competitive with the rest of the tech market.

“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 last week.

Best Buy and Target warned consumers last month to expect higher prices for everything, after the latest round of tariffs went into effect. February’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.

Read more: Apple Shoppers Are Reportedly Panic Buying iPhones Amid Looming Tariffs

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 raise revenue to offset tax cuts, although many economists say that tariffs could lead to higher prices and may end up hurting the US economy. Stock prices plummeted afterTrump’s announcement 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 of tariffs is passed on to shoppers, we’d see a 104% 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 last week — 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 proposed Chinese tariff hikes, the basic iPhone 16e, which starts at $599, could jump up to $1,222. You can get a 15-inch MacBook Air starting at $1,199 on Amazon; a 104% hike would raise the base price to $2,446

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 to “carve out” an exemption from the latest tariffs, Apple announced in February that it would spend more than $500 billion in the next four years to expand manufacturing operations in the US.

“They already committed $500 billion to US manufacturing, and there was no carve out for Apple,” Brennan said. “They will have to pass along most of these costs to consumers.”

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.

“If you finance this expense on a credit card and can’t pay it off in full in one to two months, you’ll likely end up paying way more than a tariff would cost you,” said Alaina Fingal, an accountant, founder of The Organized Money and a CNET Money Expert Review Board member. “I would recommend that you pause on any big purchases until the economy is more stable.”

One way to save on Apple products, 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.”

Technologies

Passengers and crew foil co-pilot’s apparent attempt to crash FlyDubai flight to Israel

One of the pilots on a FlyDubai flight headed for Israel stabbed the second pilot, according to Israeli Prime Minister Benjamin Netanyahu.

On-duty flight crew and passengers managed to foil a pilot’s apparent attempt to crash a FlyDubai flight, after reports emerged of a fight in the cockpit.

The incident on flight FZ1073 from Dubai to Tel Aviv happened when a co-pilot stabbed a pilot, according to Israeli Prime Minister Benjamin Netanyahu, who praised the victim’s quick thinking.

“Despite being stabbed and seriously injured, he fought back, resisted, opened the cockpit door, and enabled passengers and crew to overpower the attacker — preventing a catastrophic mid-air disaster. He saved the lives of 174 people, including Israeli citizens and other nationals,” Netanyahu wrote in a post on X.

FZ1073 was diverted to the Tabuk airport in Saudi Arabia, the airline said, after being successfully secured and diverted by flight crew.

FlyDubai in a statement said that an “altercation” occurred on the flight deck of the plane, but did not mention a stabbing.

However, the airline added that the underlying reasons and motives for the clash is currently unknown, urging all parties to refrain from speculation.

The injured pilot was identified by Netanyahu as Indian national Smit Machchhar. No details have been released on the identity of the attacker, except that he was being interrogated by Saudi authorities.

The Indian embassy in Riyadh said on X that Machchhar is in a hospital in Tabuk, and is reported to be in stable condition.

The Israeli Prime Minister also identified the passenger who broke into the cockpit as Yaniv Hayun, calling him a “hero” and adding he deserved “a global medal of honor.”

Flight data from tracking site FlightRadar24 showed that the plane had experienced extreme altitude fluctuations before broadcasting a “general emergency” squawk code.

FZ1073 had dropped from over 14,000 feet in just 29 seconds, and FlightRadar24 also added that vertical speeds ranging from approximately -30,000 to +10,000 feet per minute were observed from the transponder data.

For context, vertical speeds during normal operations rarely exceed plus or minus 4,000 feet per minute, it added.

Technologies

UK Prime Minister Burnham says Iran ‘played a part’ in British air base incident

RAF Fairford has been used as the U.S. Air Force’s command outpost for operations from Europe and for American strikes on Iranian missile sites.

United Kingdom Prime Minister Andy Burnham said Iran was involved in the incident at the Royal Air Force base in Fairford on Sunday that led to the arrest of five men on suspicion of explosive and terrorism offences.

Speaking to the BBC Wednesday, Burnham said that “There are strong indications that Iran played a part in what happened over the weekend at RAF Fairford,” without providing additional details. In response, Iranian Foreign Minister Abbas Araghchi said on X that Burnham was “barking up the wrong tree.”

RAF Fairford, located in Gloucestershire, has been used as the U.S. Air Force’s command outpost for operations from Europe and for American strikes on Iranian missile sites.

London had initially denied the U.S. permission to use UK bases for its war on Iran, but former Prime Minister Keir Starmer had allowed it for “defensive strikes.”

Burnham’s BBC interview comes as U.S. Secretary of State Marco Rubio told Fox News on Monday that the incident at RAF Fairford “clearly involves the hands of a foreign actor,” without giving any details or evidence.

The Iranian Embassy in London on Monday “categorically” rejected speculation linking the country to the alleged plot.

All the five arrested suspects are UK nationals aged between 23 and 25, and one reportedly called the police himself. They have been released on bail.

Iran UNGA delegation leaves U.S.

Separately, a U.S. official told MS NOW that Rubio “kicked out” the Iranian delegation as the United Nations General Assembly was over, saying that they had “overstayed their welcome.”

The officials, including Aragachi, left on Monday morning U.S. time. “UNGA was over, so it was time for them to go,” the official added.

Indirect negotiations between Washington and Tehran over Iran’s nuclear program and the Strait of Hormuz failed to bear any fruit over the course of the U.N. General Assembly.

Tehran had proposed a seven-day deal at the UNGA, under which the Strait of Hormuz would be opened and nuclear talks resumed with the U.S. if Washington returned to the terms of the Islamabad deal framework.

The Islamabad memorandum of understanding in June led to a ceasefire agreement between the U.S. and Iran that collapsed in early July. The Trump administration is unwilling to return to the terms of the June agreement, according to a report by the Wall Street Journal.

President Donald Trump on Sunday called the latest Iranian proposal “unacceptable,” telling reporters that Tehran wants a swift deal because of the economic pressure it is under.

— CNBC’s Anniek Bao contributed to this report.

Technologies

Oil prices rise as Chinese refiners reportedly ban October fuel exports; Brent crude above $100

It comes after a report that Chinese refiners suspended October fuel exports to protect domestic supplies.

Oil prices rose on Thursday, following a report that Chinese refiners have suspended October fuel exports, further squeezing war-constrained energy markets.

Brent crude, the international benchmark, was last seen trading about 3.7% higher at $101.64 per barrel, while U.S. West Texas Intermediate futures rose 2.3% to $92.49.

Reuters reported that China’s state oil major PetroChina canceled a handful of gasoline and jet fuel shipments that were planned for October, citing multiple unnamed sources, as Beijing looks to safeguard domestic supplies. CNBC could not independently verify the report.

Global energy markets have been grappling with supply disruptions from the U.S.-Iran war in the Middle East and Russia’s full-scale invasion of Ukraine.

Oil prices had moved higher earlier in the session as investors parsed a recovery in Middle East crude exports.

UOB in a note Thursday said that crude flows from Middle East were reportedly nearing pre-war levels, but fuel supplies, particularly gasoline, were lagging behind.

Worries over crude supply disruptions have eased following the resumption of oil tanker loadings by Saudi Arabia from its Red Sea port of Yanbu after the kingdom restarted operations on its East-West Pipeline.

“The pipeline has done much of the heavy lifting when it came to moving crude out of the Gulf,” given that Iran has blocked the Strait of Hormuz, said David Morrison, senior market analyst at Trade Nation on Wednesday.

“Analysts say that the pipeline is nowhere near running at full capacity. But the fact that it is open provides some relief and has helped oil prices retreat,” Morrison added.

Traders continue to keep a close eye on developments in the Middle East amid concerns that a lasting resolution to the Iran conflict may be delayed, with U.S. Secretary of State Marco Rubio ordering the Iranian delegation visiting America to leave as the UN General Assembly was over, according to MS Now.

U.S. and Iranian officials had reportedly held separate indirect talks with mediators on Monday, while in New York for the UNGA.