President Trump announced a 90-day pause on tariffs from most countries today, but China is not included. In fact, the tariff on Chinese imports has jumped from 104% to 125%, taking effect immediately.
To recap, the tariff on China started at 20%. Subsequently, it increased to 54%, then to 104%, and now it stands at 125%.
Effects of Trump’s Tariff on China
While China is a key player in Apple’s supply chain, it’s not the only one; Vietnam, India, and others also play significant roles. Nonetheless, China remains the primary source.
These calculations suggest one important thing: if you’re considering a new Apple product or an upgrade, now is the time to make that purchase. There’s no way Apple can sell products imported from China with a 125% tariff without raising prices significantly.
For instance, producing an iPhone 16 Pro with 256GB costs approximately $580, which includes parts, testing, and final assembly. With a 125% tariff, the price upon arrival in the US would be around $1305 (excluding any profit margin). Even if Apple aimed for minimal profit and priced it at $1399, it would still mean a $300 increase from the current price of an iPhone 16 Pro with 256GB.
Apple does manufacture several iPhone models in India, which may help mitigate some of the costs. However, these figures highlight the potential seriousness of the tariffs.
Therefore, if you’re in need of a new Apple product, I advise against waiting to see how prices will change. For those who aren’t in a hurry, there’s no need to panic buy; this advice mainly pertains to urgent purchasers.
Apple Products at Regular Prices
iPhones:
iPads (all models discounted):
Macs (most models discounted):
Items like AirPods and Apple Watch are not included here, as they are predominantly manufactured in Vietnam.
My favorite Apple accessories on Amazon:
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