iPhone lovers in the US may soon need to dig much deeper into their pockets. With fresh tariffs reportedly in the works, Apple’s latest flagship models could see massive price hikes — possibly crossing the $2,000 mark for some variants.
According to a Wall Street Journal report, the cost of making an iPhone is expected to spike due to President Donald Trump’s proposed tariffs on imports from China and other countries. These tariffs, aimed at reducing reliance on foreign production, could hit Apple hard — especially since most iPhones are still assembled in China.
Take the iPhone 16, for instance. The base model, currently priced at $799, could shoot up to around $1,142 if the predicted tariff impact plays out. That’s a nearly 43% increase.
The top-tier 1TB iPhone 16 Pro Max, which now sells at $1,599, might end up costing about $2,300 — roughly ₹1.92 lakh. Even Apple’s lower-cost iPhone 16e, introduced at $599, could jump to around $856.
While iPhones are mainly assembled in China, the components come from all over the world. Japan makes the rear camera — the most expensive part — costing around $127. The processor, costing about $90, comes from Taiwan, and the $38 display is made in South Korea.
The only major American-made component in the iPhone is a $22 memory chip. That’s right — everything else comes from outside the US. And with Trump’s new tariffs targeting imports, almost all of these parts would attract higher duties, increasing Apple’s manufacturing costs significantly.
Back when Trump first introduced tariffs during his previous term, Apple managed to get an exemption. This time, things look different. So far, no product — not even the iPhone — has been granted an exemption. That could be a key reason why prices are now under pressure.
According to TechInsights analyst Wayne Lam, the cost of parts for the 256GB iPhone 16 Pro might go from $550 to $820. A 54% jump. Add to that manufacturing, testing, and other overheads, and the total production cost may go up by around 43%, say analysts quoted by Reuters.
Howard Lutnick, Trump’s Secretary of Commerce, told Face the Nation that they want iPhones assembled in the US.
“The army of millions and millions of human beings screwing in little screws to make iPhones — that kind of thing is going to come to America,” he said.
But that would likely push costs even higher. Labour in the US is significantly more expensive than in China, and unless Apple automates a large chunk of the assembly line, iPhones made in America could cost much more than they already do.
Apple’s iPhones already sit at the premium end of the smartphone market. And while the iPhone 16 is expected to bring new features — a faster processor, better battery, improved camera, and “Apple Intelligence” — it’s unclear if buyers will happily pay such steep prices.
With iPhone sales reportedly already lagging, the timing of these price hikes could pose a fresh challenge for Apple in its biggest market.
