Tariffs could soon raise the price of iPhone. James Martin/CNET
President Donald Trump announced he has made a deal with China, which could potentially affect the cost of a new iPhone -- but maybe not as much as you think.
"WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%," Trump said in a post on Truth Social, noting that he and China's president, Xi Jinping, still need to give their final approval for the deal.
However, 55% "total" tariff incorporates 30% the countries agreed to in May (10% "reciprocal tariff" + 20% "fentanyl tariff") and approximately 25% from tariffs that Trump imposed on China during his first term, according to a White House official.
Although 55% is substantially less than the original 145% tariff against China Trump originally put in place, it's still likely to result in higher prices for many items, said Michael Coon, associate professor of economics at the University of Tampa. And the new tariff deal doesn't take into account the 25% smartphone tariff Trump announced shortly after Apple said it was moving production of US iPhones to India.
"I would suspect that the 25% smartphone tariff would be added on top of the existing tariffs in China," he said. "I think the smartphone tariff is more reaction to India -- Apple's announcement that they were going to ship most of their production to India."
Apple didn't mention tariffs during its Worldwide Developers Conference this week, but with the rumored iPhone 17 due for a price hike -- regardless of tariffs -- is now the time to buy a new iPhone?
Read more: Thinking About Buying a New iPhone? Here's Why You Should Wait
How much could tariffs raise iPhone prices? We do the math
Companies don't always pass the full tariff onto customers in the form of higher prices, but they can. Even if Apple could absorb some of the costs, you should expect to see significant price jumps if tariffs take effect.
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