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

Trump Maintains US‑Iran Negotiations Continue Amid Tehran’s Denials of Duplicity

President Trump insists that US‑Iran talks are ongoing despite Tehran’s denial of any negotiation plans, while warning that only a deal or total surrender will allow passage through the Strait of Hormuz. Conflicting statements from both sides have heightened uncertainty as the conflict enters its sixth month.

On Monday, President Donald Trump asserted that negotiations between the United States and Iran are still taking place, even after Tehran stated it has no intention of engaging in direct talks with Washington.

In a fiery Truth Social post, Trump labeled Iran’s leaders “unbelievably duplicitous,” claiming they are lying about ongoing peace talks “whether Iran wants to admit it or not.” He repeated his assertion that the United States completely controls the Strait of Hormuz, despite maritime traffic through the crucial route lingering at only a small fraction of pre‑conflict levels.

He wrote, “Nothing reaches Iran unless we allow it, and nothing will pass unless a deal—or total surrender—is achieved.”

Earlier that day, Iranian Foreign Ministry spokesperson Esmail Baghaei told reporters there is no imminent plan for U.S.–Iran negotiations, contradicting Trump’s earlier comment that talks would resume Monday afternoon. Baghaei added that Iran’s only current discussions are with Oman concerning the Strait of Hormuz.

The conflicting statements have heightened uncertainty over the peace‑talk process and the broader conflict, now in its sixth month.

Trump’s assertion about new negotiations came a day after he said on Truth Social that he had agreed to cancel a massive strike against Iran “subject to being able to rapidly make a DEAL.” He said in the same post that Iran and other Middle Eastern countries had asked him to hold off on that attack because “the perimeters of a deal has been agreed to.”

Trump has claimed dozens of times throughout the more‑than‑five‑month‑long war that a deal is at hand. No permanent deal has been signed, and a temporary ceasefire reached in June has fallen apart.

Trump has also repeatedly threatened to launch devastating strikes against Iran before backing off. After the latest example, oil prices on Monday fell and stocks surged.

BMI, a research unit of Fitch Solutions, said in a note Monday that a broader diplomatic understanding on reopening the Strait of Hormuz is still achievable this quarter, while raising the probability of its escalation scenario to 35% from 25%, citing mounting military, diplomatic and economic signs of rising U.S.-Iran tensions.

“Diplomatic progress is likely to be punctuated by periodic military flare-ups, while miscalculation by either side could trigger a renewed escalation,” BMI analysts wrote in a note. The firm said the key issue to watch is the future governance of the strait, as the Iran-Oman talks — potentially backed by Gulf states, China and the U.S. — point to efforts to build a post-conflict shipping framework.

Shipping risks persist even as diplomacy appears to be advancing. The United Kingdom Maritime Trade Operations Centre said it received a report of an incident 20 nautical miles (23 miles) northeast of Khasab, Oman — at the mouth of the strait — with a tanker’s master reporting an explosion in close proximity to the vessel at about 20:37 UTC Sunday (4:37 pm ET). The vessel and crew were safe and authorities are investigating, UKMTO said, advising ships to transit with caution.

The proposal Trump announced over the weekend calls for the U.S. and Iran to return to negotiations and continue ironing out some of the thorny issues that had derailed diplomatic efforts, according to The Associated Press, citing a regional official involved in the mediation efforts.

The official said the proposal also includes a reopening of the Hormuz Strait and halting attacks across the region, including by Iranian-backed militias in Iraq on the Arab Gulf countries and Jordan.

The U.S., for its part, will end its naval blockade on Iran and allow Tehran to export its oil, the official said, adding that no deal has been reached, although the mediation efforts remained underway.

Trump’s weekend reversal has lowered the temperature after days of escalating attacks across the Gulf. Kuwait said Saturday that Iranian forces launched a wave of drones within its airspace, with its military destroying multiple aircraft after Iran targeted critical infrastructure in the country’s north.

A parallel track with Muscat is also advancing. Iranian diplomats said Tehran was close to reaching a new arrangement with Oman to manage shipping through the Strait of Hormuz, a deal critical to preventing the war from escalating further, according to the Financial Times.

Iranian officials said negotiations over future management of the Hormuz Strait with Oman, which sits on the opposite shore of the waterway, are in their final stages. The agreed shipping route would be different from those used before, according to Iran’s Foreign Ministry spokesperson, Baghaei, adding that the new route was separate from the issue of the strait’s reopening or continued closure.

Technologies

Oil Prices Slide as Trump Halts Planned Iran Strike

Oil prices dropped after Trump cancelled a planned strike on Iran, with WTI down about 5% and Brent near 5% lower. He said the move followed requests from Tehran and regional allies for a pause while a deal shaping the Strait of Hormuz and Iran’s nuclear program is negotiated.

Oil prices fell on Monday after President Donald Trump announced he had cancelled a planned strike on Iran. WTI futures dropped roughly 5% to $80.34 a barrel, while Brent slipped about 4.7% to $83.77 a barrel.

Trump said early Sunday he called off the strike after Iran and several Middle Eastern nations asked him to hold off, noting that the outlines of a deal had been agreed upon. He added that the prospective accord would entail the immediate, full opening of the Strait of Hormuz and an end to Iran’s nuclear ambitions, according to his Truth Social post.

The president had been considering another round of strikes as diplomatic hopes waned since the conflict began on February 28. He said the U.S. and Iran would meet for talks on Monday, but Iran denied any scheduled negotiations with Washington, citing PressTV. Iran’s foreign‑ministry spokesperson Esmaeil Baghaei clarified that Tehran was only discussing shipping routes through the Strait of Hormuz with Oman. In a follow‑up Truth Social message, Trump insisted that, regardless of Iran’s acknowledgment, the United States is indeed discussing a solution to a long‑standing problem created by Iran.

Technologies

Oil Prices Drop as Trump Cancels Planned Attack on Iran

Oil prices fell sharply after President Trump announced the cancellation of a planned strike on Iran, citing a new deal that would open the Hormuz Strait and end Iran’s nuclear threat.

Oil prices fell sharply on Monday after President Donald Trump announced that he had called off a planned strike on Iran.

West Texas Intermediate futures, the U.S. benchmark, slipped roughly 5% to close at $80.34 per barrel, while Brent crude, the international benchmark, declined 4.7% to settle at $83.77 a barrel.

Trump made the announcement early Sunday, saying he had canceled the strike following requests from Tehran and other Middle Eastern countries.

In a Truth Social post, he wrote: “We have just been asked by Iran, and other Middle Eastern Countries, to hold off any attack in that the perimeters of a deal has been agreed to.”

The president indicated that the proposed agreement would include the immediate, complete, and total opening of the Hormuz Strait, as well as an end to Iran’s nuclear threat.

Trump had been weighing additional strikes amid diminishing prospects for a diplomatic resolution to the conflict that began on Feb. 28. He stated that the U.S. and Iran would hold negotiations on Monday.

Tehran denied that talks were planned with Washington, according to state news outlet PressTV.

Iran’s Foreign Ministry spokesman Esmaeil Baghaei said Tehran was only holding talks with Oman regarding the routes ships can use through the Strait of Hormuz.

In a subsequent Truth Social post, Trump added that whether “Iran wants to admit it or not, we are, in fact, talking of a solution to a problem that they have caused for decades.”