This Wednesday, Donald Trump announced a battery of customs duties affecting dozens of countries: Europe, China, Southeast Asia... and even territories where there is no human activity. Companies that import products to sell in the United States are heating up their calculators to determine the amount they will charge their American customers to compensate for the payment of these customs duties - because in the end, it is the consumers who will pay the price.
Up to 40% increase if Apple passes on Trump's customs duties
Nintendo has also postponed Switch 2 pre-orders and suggests that the new console could be priced higher in the United States. And what's true for Nintendo is true for many other tech companies, starting with Apple.
Apple won't confirm anything at the moment, but several analysts have looked at the different scenarios, and it doesn't bode well. US consumers should expect price increases of 30 to 40% if the Apple company passes them the bill for Trump's tariffs. According to projections from Rosenblatt Securities, an iPhone 16 currently at $799 would cost $1,142, or 43% more. An iPhone 16 Pro Max at $1,599(1TB) would rise to $2,300 (!).
The iPhone 16 Pro Max, the new entry-level model launched at the beginning of the year, would cost $856... A far cry from the "affordable" price of $599. All Apple devices are affected: AirPods, Max, iPad, Apple Watch... For Counterpoint, the company would have to increase its prices by at least 30% on average to compensate for import taxes.
Consumers are clearly not ready for such prices. Analysts believe Apple will absorb a good portion of these tariffs until this fall, when the new iPhone 17 lineup launches. Watch out for the bamboozle!
And these clever calculations don't take into account the trade retaliation measures Apple will face in China, Vietnam, and India. China has decided to impose a 34% tariff on US imports. No one wins when it comes to tariffs.
Source: Reuters
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