These new tariffs could dramatically alter the global trade landscape, especially for consumer goods like the iPhone, analysts say, with iPhone prices expected to rise by 30% to 40% if Apple decides to pass the cost on to consumers.
Because of Trump's tariffs, will iPhones exceed 60 million VND?
Currently, most iPhone models are still manufactured in China, where they will be subject to a total tax of up to 54% under the new tax policy issued by Mr. Trump. If the tax continues, Apple will face a difficult choice: absorb the additional costs or raise the price of the product.
Apple sells more than 220 million iPhones a year, with the biggest markets including the US, China and Europe. The cheapest iPhone 16 currently has a list price of $799, but that could rise to $1,142 if Apple passes the cost of the tax on to consumers. The iPhone 16 Pro Max currently has a list price of $1,599 but could rise to nearly $2,300 in the same scenario.
iPhone 16 Pro Max could sell for up to $2,300
PHOTO: REUTERS
iPhone no longer 'tax exempt'
During his first term, President Donald Trump imposed tariffs on many Chinese imports in an effort to push American companies to bring manufacturing back home. However, Apple received some exemptions for its products. This time, Trump has yet to grant any exemptions.
Quick view 8:00 p.m. April 3: US imposes heavy tariffs - How will Vietnam and Asia react?
“The whole China tariff thing is playing out in stark contrast to our expectation that Apple would be given the same priority as last time,” said Barton Crockett, an analyst at Rosenblatt Securities. If the new tariff increases are implemented, the iPhone 16e, which launched in February with a starting price of $599, could rise to $856.
Angelo Zino, an analyst at CFRA Research, said Apple will have a hard time passing on more than 5% to 10% of the cost to consumers, especially given the lackluster sales of the iPhone 16. So he expects Apple to hold off on any major price increases until this fall, when the iPhone 17 is due to launch.
While some of Apple’s production has been moved from China to Vietnam and India, both countries are affected by Trump’s new tariffs, with 46% and 26%, respectively. Counterpoint Research analyst Neil Shah believes Apple will need to raise its average prices by at least 30% to offset the import duties.
A sharp price increase could reduce demand for iPhones and give Samsung an advantage, given the lower tariffs in South Korea. Crockett also noted that negotiations between Apple, China and the US could take place in the near future. "It's hard to imagine Trump destroying an American icon like Apple, but the situation seems pretty tough right now," he said.
Source: https://thanhnien.vn/gia-iphone-co-the-tang-manh-len-den-2300-usd-185250404084427016.htm
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