Apple’s iPhones may soon cost more—thanks to potential new U.S. tariffs on Chinese imports.

*Calculated using initial 54% tarrif projection, and as of April 9th, 2025, the tarrif rate on Chinese goods is at a astonishing 125%.

As the U.S. government considers adding a 54% tariff on electronics from China, Apple, one of the biggest tech importers, could be hit hard. The iPhone 16 Pro, for instance, currently retails at around $1,100, but its production costs are about $580. If tariffs are imposed, Apple’s cost per unit could jump to $850—a massive increase that might either slash profit margins or be passed directly to consumers.

So, what’s Apple’s way out? Building iPhones in the U.S. might seem like a solution, but it’s not that simple. Labor in China currently costs Apple roughly $30 per device, while U.S. labor could push that number to $300. Plus, replicating China’s extensive manufacturing ecosystem in the U.S. would be incredibly expensive and complicated.

Experts agree: moving production stateside isn't realistic in the short term.

Apple hasn’t officially commented on how it will respond. But with the stakes this high, changes could be coming—either in pricing, manufacturing strategy, or both.

What Should Consumers Do?

If you're worried about potential price hikes, now may not be the time to panic-buy older models. Instead, experts suggest holding on to your current phone longer. Extending your upgrade cycle might be the smartest move—especially as Apple and other brands navigate this uncertain trade landscape.

As always, we’ll be keeping an eye on how these tariff talks unfold and how they may affect the cost of your next iPhone.