The introduction of President Donald Trump’s 34% tariffs on Chinese imports, including smartphones, on 9 April is likely to lead to an increase in the price of devices such as the iPhone for US buyers.
While Apple’s historically strong margins could allow it to absorb the tariffs in the short term, it is expected that the company will pass the extra cost onto consumers with the next iteration of the iPhone, likely to be the iPhone 17 which is expected in the autumn.
The tariffs are unlikely to persuade Apple to manufacture devices in the US, as the company currently has limited domestic production and switching to US-based manufacture would be prohibitively expensive.
Apple is likely to continue to manufacture iPhones oversees and find ways to mitigate the impact of the tariffs, such as seeking to pass on some of the cost to suppliers and customers.