This week U.S. President Donald Trump imposed a series of sweeping tariffs on countries around the world that could drastically alter the landscape of global trade — and it’s bad news for tech companies like Apple.
Consumer goods like iPhones could be among the hardest hit, analysts said on Thursday, with increases of 30% to 40% if the company were to pass on the cost to consumers. That’s because most iPhones are still made in China (although Apple is establishing new manufacturing partners in countries like India and Vietnam), which was hit with a 54% tariff. If those levies persist, has a tough choice: absorb the extra expense or pass it on to customers, notes Reuters.
Tariffs could increase iPhone prices by up to 43%, according to Rosenblatt Securities. Also bad news for Apple: its main smartphone competitor Samsung may gain an advantage due to lower tariffs on South Korea, where most Samsung devices are manufactured.
Shares of the company closed down 9.3% on Thursday, hitting their worst day since March 2020.
