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

Bessent reportedly tells Russia it won’t get economic relief until it ends Ukraine war

The meeting underscored Washington’s willingness to reopen diplomatic talks with Moscow, as Europe intends to isolate the nation while the war continues.

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Technologies

Venezuela awards 100-year concessions across 17 oil fields to U.S.-backed company NABEP, according to the White House

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Technologies

Tehan Calls for Return to June Agreement, Crude Climbs as Trump Pledges to Strike Iran Forcefully

Oil prices climbed Tuesday amid fears of escalation after fresh U.S.-Iran military strikes and unrest in the Strait of Hormuz, as Tehran urged Washington to return to the June interim deal and Trump promised to hit Iran hard.

Oil prices extended gains Tuesday as traders mulled the threat of escalation, following the resumption of U.S.-Iran military strikes and more turmoil in the Strait of Hormuz.

A tanker was struck by three unknown projectiles while transiting Hormuz on Monday, according to an incident report from the the U.K. Maritime Trade Operations Centre.

Brent

The tanker was sailing in the southern shipping lane close to the Omani coast, the UKMTO said, adding that no casualties were reported.

Iran launched an attack on two American bases in Jordan on Monday in retaliation for the U.S. strike on its Larak Island. American forces targeted two Iranian rocket launchers on Larak Island on Sunday, reportedly killing three, saying that Tehran intended to launch rockets carrying sea mines into the Hormuz Strait.

The small island, located in the strait, has been a critical military and shipping control point for Iranian forces, helping them keep a firm grip on vessel traffic through one of the world’s most critical maritime routes.

Iranian President Masoud Pezeshkian told the Shanghai Cooperation Organisation Summit on Tuesday that Tehran would immediately reciprocate if Washington agreed to return to its commitments under the interim deal signed in June, according to the Iranian Student News Agency.

The back-and-forth hostilities marked the first time that the U.S. and Iran traded strikes in over a month.

While neither side appeared to be seeking a return to full-scale war, both signaled they were prepared to respond to further attacks. “We are going to hit them hard,” President Donald Trump told Fox News on Monday, saying that “there will be a response” to Iran’s attacks on U.S. military bases in the region.

Analysts largely view the U.S. strike on Larak Island as an attempt to break a deadlock rather than a shift in strategy. “By hitting the launchers rather than broader Iranian military infrastructure, the U.S. appears to be punishing a specific behaviour rather than, at least for now, broadening its war aims,” said Ali Vaez, deputy program director at International Crisis Group.

“It is enforcing the blockade,” said Jason Brodsky, policy director of United Against Nuclear Iran, adding that the Trump administration’s goal was to further degrade Tehran’s capabilities to mine the Strait of Hormuz, while focusing on economic coercive measures as the midterm elections approach.

Washington has ramped up pressure to squeeze Iran’s already-torn economy with “secondary sanctions” that punish nations and businesses buying Iranian crude oil. U.S. Treasury Secretary Scott Bessent said Monday, on the sidelines of the Group of 20 finance ministers gathering, that Iran was “lashing out kinetically” because the new sanctions were taking a toll on its economy.

Speaking from the Oval Office on Monday, Trump reportedly said Iran’s financial systems, armed forces, and governing body have been largely degraded. “It doesn’t mean we won’t smack them to see what happens,” the president said.

The war, now stretching into its seventh month, has disrupted global energy supplies and sent shock waves through global financial markets.

“This is fundamentally an endurance contest,” said Brodsky, as Trump has demonstrated an “unpredictability” that should concern the Iranians, and Tehran may lash out more aggressively militarily as the economic pressure mounts.