Tariffs could soon raise the price of iPhone, but there are other reasons, too.
Anyone interested in buying a new iPhone may want to consider acting sooner, rather than later. On Friday, President Donald Trump wrote on social media that Apple will be required to pay a 25% tariff on iPhones made outside of the US, a move that would almost certainly lead to higher prices.
"I have long ago informed Tim Cook of Apple that I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the US," Trump said in the post.
Trump did not clarify if this tariff would be in addition to the existing tariffs the company is paying on imports from China, India and other countries, nor did he provide a timeframe for implementing this tariff.
This is the latest in the Trump administration's back-and-forth trade war. Earlier in May, the US and China agreed to a 90-day pause on most of their tit-for-tat tariffs. A few days later, Trump was admonishing Apple for moving production of US iPhones to India, which currently has its own temporary tariff pause in place (except for baseline tariffs) before it faces a 26% tariff in July. Maybe.
Experts say price hikes for the iPhone are likely on the way, regardless of what happens with tariffs.
"The iPhone is due for a price increase," said CNET Managing Editor Patrick Holland, who's been reviewing phones for CNET since 2016. "The entry-level iPhone is $829 and has cost that much for years. The last time it had a price [hike] was in 2020."
I recently panic-bought a new iPhone 16 Pro, shortly after President Donald Trump announced his "Liberation Day" tariffs, but before he added most Apple products to an exemptions list. While I have no regrets, I also made sure I could fit the purchase comfortably into my budget.
I'm glad I acted when I did, but that doesn't mean you should rush to the Apple store. If you're considering buying a new iPhone, here's what you need to know about the current state of tariffs and how they could affect prices in the coming months. You can also check out our tracking on the real-world impacts of tariffs on popular tech products with our tariff pricing tracker.
Read more: iPhone 17 Pro Rumors and Leaks: Here's What We've Learned So Far
How much could tariffs raise iPhone prices? We do the math
Companies don't always pass the full tariff onto onto customers in the form of higher prices, but they can. If Apple decides to offset tariffs by raising prices, you could see significant price jumps.
Currently, iPhones manufactured in China are subject to a 30% tariff, which includes the 10% baseline plus a 20% "fentanyl tariff" for the country's supposed role in allowing fentanyl to enter the US. Goods from India and other countries have a 10% tariff. Here's how the current tariffs and potential 25% Apple tariff could affect the price of the iPhone:
How much could iPhones made in China cost after tariffs?
| iPhone model | Current price | Cost projection with the current 30% tariff rate | Cost projection with additional 25% tariff |
|---|---|---|---|
| iPhone 15 (128GB) | $699 | $909 | $1,136 |
| iPhone 15 Plus (128GB) | $799 | $1,039 | $1,299 |
| iPhone 16e (128GB) | $599 | $779 | $974 |
| iPhone 16 (128GB) | $799 | $1,039 | $1,299 |
| iPhone 16 Plus (128GB) | $899 | $1,169 | $1,461 |
| iPhone 16 Pro (128GB) | $999 | $1,299 | $1,624 |
| iPhone 16 Pro Max (256GB) | $1,199 | $1,559 | $1,949 |
| iPhone 16 Pro Max (1TB) | $1,599 | $2,079 | $2,599 |
How much could iPhones made in India cost after tariffs?
| iPhone model | Current price | Cost projection with the current 10% tariff rate | Cost projection with additional 25% tariff |
|---|---|---|---|
| iPhone 15 (128GB) | $699 | $769 | $961 |
| iPhone 15 Plus (128GB) | $799 | $879 | $1,099 |
| iPhone 16e (128GB) | $599 | $659 | $824 |
| iPhone 16 (128GB) | $799 | $879 | $1,099 |
| iPhone 16 Plus (128GB) | $899 | $989 | $1,236 |
| iPhone 16 Pro (128GB) | $999 | $1,099 | $1,374 |
| iPhone 16 Pro Max (256GB) | $1,199 | $1,319 | $1,649 |
| iPhone 16 Pro Max (1TB) | $1,599 | $1,759 | $2,199 |
There's a lot more that goes into the price of an iPhone than simply where it's assembled. Apple sources components for its products from a long list of countries, which could face higher tariffs after the pause. And a tariff on goods doesn't necessarily mean prices will increase by the same amount. If companies want to stay competitive, they could absorb some of the costs to keep their prices lower.
"It won't be as high as 1-to-1 in terms of the tariff increases," Reith said. "The math isn't as clear-cut as that on the tariffs."
Apple did not respond to a request for comment for an earlier version of this story.
When could we see iPhone prices increase?
It's unclear exactly when prices could go up, but if companies sell out of devices produced before the tariffs, they may have to increase prices on products in tariffed shipments.
However, even if Apple can't avoid tariffs entirely, it has ways to offset the impact through its services -- including its music, news and data plans -- according to supply chain expert Joe Hudicka.
"Apple will likely absorb some of the tariff costs up front to keep sticker prices stable, then pass the rest on to consumers gradually through service bundles, device longevity and ecosystem upgrades," he said. "Consumers will still pay, just not all at once."
And regardless of how the tariff drama plays out, the Wall Street Journal reports that Apple plans to raise iPhone prices later this year. So expect prices to go up soon.
Is it better to buy an iPhone and other tech now or wait?
If you already planned to buy a new iPhone, gaming console, MacBook or other tech, buying it now might save you money. But if you don't need a new phone immediately, Holland recommends waiting.
"If iPhone prices rise, know that, like cars, the prices for used iPhones will likely rise, too," he said. "If Apple does raise its prices, you'll likely get more for your old iPhone when you trade it in, and that should offset any increased prices."
If you don't have the cash on hand and are considering using a credit card or buy now, pay later plan just to avoid tariffs, 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 or a used one. And trading or selling a used one can help offset the cost even more.
"Apple has leaned into that with its Certified Refurbished program, much like the auto industry's used car model," Hudicka said. "This program helps extend the lifespan of devices, keeping customers in the Apple ecosystem longer while distributing the cost impact over time."
What's the latest on tariffs?
On May 23, Trump threatened Apple with a minimum 25% tariff on all iPhones manufactured outside of the US, putting pressure on the tech giant to ramp up US manufacturing. It's unclear if this would be in addition to the new tariffs announced on Liberation Day.
On Liberation Day, Trump announced a 10% baseline tariff on all imports plus reciprocal tariffs on imports from more than 180 countries. He quickly announced a 90-day pause on the reciprocal tariffs but left the baseline levies in place.
Trump'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 after Trump'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. He started in February, imposing 20% tariffs, then announced a 34% tariff on goods from China in April. He added an additional 50% tariff before eventually landing on the 145% tariff against China. China has responded with its own tariffs after each of Trump's announcements. They agreed to a deal this week to drop their reciprocal tariffs by 115 percentage points for 90 days.
The US Customs and Border Protection listed some key consumer electronics exempted from the reciprocal tariffs, but Trump said those products would still be subject to a 20% fentanyl tariff. White House officials said the reprieve from additional tariffs was temporary and that those products would instead be subject to a "semiconductor tariff."
Even before Trump announced the tariffs, Apple's biggest suppliers in India had shipped nearly $2 billion worth of iPhones in March, according to customs records. Reportedly, Apple may source its iPhones for the US market from India by the end of 2026 -- although perhaps not all of them. And Trump recently said he pushed Apple CEO Tim Cook to move US iPhone production from India to the US.
But the cost of moving production to the US could be prohibitively high, at least for now, due to labor costs and logistics.
Tariffs, in theory, are designed to financially affect 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.
