IPHONE PRICES MAY INCREASE UNDER TRUMP'S NEW TARIFFS ON ASSEMBLY PARTS

Smartphone manufacturer Apple faces rising assembly costs for its iPhone lineup due to the Trump administration's new import tariffs targeting parts from China, India, and Vietnam, key production hubs for the company.

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The White House confirmed a 54% tariff on assembly components from China, 26% from India, and 46% from Vietnam in a press briefing, impacting Apple's supply chain. For U.S. consumers, retailers, and industry analysts, these levies could push iPhone prices higher as production expenses climb.

The tariffs apply to the cost of assembly parts imported into the U.S., not final sales prices, affecting Apple's operations across these countries. Current iPhone 16 models range from $599 for the base 16e to $1,599 for the 1-terabyte 16 Pro Max, with analysts estimating a 20% to 30% retail price rise if costs are passed on. Apple has not detailed its response but plans to leverage stockpiles and tax incentives to soften the impact, per company strategies under review.

This policy seeks to address trade imbalances by encouraging U.S. manufacturing, though Apple's reliance on Asian assembly leaves it exposed. With China handling most iPhone production, the company must decide whether to absorb these costs or adjust pricing in its largest market.

TARIFFS RAISE ASSEMBLY PART COSTS FROM KEY REGIONS

The Trump administration has imposed a 54% tariff on assembly parts imported from China, where Apple produces over 70% of its iPhones, alongside 26% from India and 46% from Vietnam, secondary manufacturing sites. A 10% baseline tariff applies to all U.S. imports, with higher rates targeting over 60 countries based on trade deficits, hitting Apple's supply chain for components like casings and circuit boards. This affects goods entering the U.S., not their final retail value.