Brits warned over extortionate ‘new price of iPhones’ following Trump tariffs
If you were thinking about upgrading your iPhone, experts say you'd be better off doing it sooner rather than later.
That's because the tariffs which Donald Trump is doling out left, right and centre could cause the cost of the Apple gadgets to soar expeditiously.
The tech giant is 'perhaps one of the most tariff-exposed companies' on the planet, according to global technology analyst Ben Barringer, which doesn't bode well for consumers.
This is both 'bad news' for the firm and customers alike, as unless Apple chooses to take the hit for shoppers, both the company and its customers will feel the brunt of the price increases.
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iPhones are set to be more expensive to make and therefore more expensive to buy, following China's retaliation against the 'Liberation Day' announcement.
One of the nation's biggest exports to the US is smartphones and these are among the goods which are now subject to a 104 percent tariff when they arrive in the States.
This trade row is expected to have quite the detrimental knock-on effect on gadgets, given that China and other Asian nations do a lot of manufacturing - and consumers will likely pay the price.
Some analysts have suggested that the price of the new iPhone could be increased by up to 43 percent due to the president's controversial tariffs.
Prem Raja, head of trading floor at Currencies 4 You, warned that the added fees which now come on top of Chinese imports 'could significantly impact iPhone pricing globally'.
He told Newspage, as per Sky News: "Analysts suggest US prices might surge by up to 43 percent if Apple passes on the costs, potentially raising the iPhone 16 Pro Max price to approximately $2,300 (£1,800)."
Harry Mills, director at currency management firm Oku Markets, also reckons that those considering buying a new iPhone really ought to strike while the iron's hot.
"Consumers eyeing an upgrade might do well to act sooner and avoid a gamble on a £300 price hike," he said, adding that as costs increase, people 'can surely expect a feedthrough straight to prices'.
Ben Barringer, global technology analyst at Quilter Cheviot, also believes that the tariffs are going to have a 'profound impact' on the price of technology.
"Donald Trump’s tariffs are ultimately bad news for consumer electronics," he said. "No-one knows how much iPhones or other devices will now cost - there is still a lot to work out.
"However, it is fair to say that Apple is perhaps one of the most tariff-exposed companies out there. It has spoken previously about gaining an exemption, but whether or not this comes to fruition remains to be seen.
"We are not seeing any forecasts of extreme price rises for Apple’s products, but it is fair to say price increases are likely. Apple has the pricing power to do this, but we will soon find out how far it can go."
He explained that it's unlikely that the company will move production to the US due to the time and cost this would take - and it probably wouldn't save any money anyway.
Barringer said the ripple effect of Trump's tariffs would be felt far and wide - and Brits won't be spared from it either.
"The tariffs announced are going to have a profound impact on supply chains globally, and not just on US consumers," he added.
"We are likely to see retaliatory measures introduced by other countries, which will just escalate the cost of goods - including for those consumers buying in the UK.
"We may also see companies raise prices in other markets to help subsidise the new cost of sale in the US, but much of that sort of strategy will take a while to be implemented.
"While the tariffs have now come into effect, their impact is still the great unknown."
In 2019, Apple CEO Tim Cook negotiated 10 percent tariff exemptions with Trump to stop the price of iPhones increasing for US consumers.
Other tech firms, such as Nintendo, have also been feeling a similar pinch due to the tariffs and it has delayed opening the pre-orders for its much anticipated Switch 2 console in the US as a result.
It was due to begin on Wednesday (9 April), however, it has been pushed back so that the firm can assess the 'potential impact of tariffs and evolving market conditions'.
LADbible has contacted Apple for comment.
Topics: Apple, Business, China, Donald Trump, Money, Technology, UK News, US News, iPhone, Phones
Olivia Burke