Here’s what Trump’s ‘reciprocal’ tariffs could’ve meant for Apple product pricing

This morning, Bloomberg reported that tech imports would be excluded from the Trump administrations 125% “reciprocal” China tariff. To be specific, this includes “smartphones, laptop computers, hard drives and computer processors and memory chips.” In short, Apple doesn’t really have something to worry about anymore – at least for now. The initial 20% tariff for the “fentanyl crisis” is still in place, however. While we are safe from imminent price hikes for now, an additional 125% tariff on China would’ve been extremely damaging. Here’s a quick overview bullet we just dodged. Tariff overview Tariffs are applied on top of the declared value at the time of import. This means that tariffs would hurt Apple’s margins, but it doesn’t necessarily guarantee price hikes – at least in low increments. For example, an iPhone 16 Pro 256GB costs Apple $580 in parts, assembly, and testing. With the initial 20% China tariff, that would mean that the effective cost would be $696. While Apple certa ... Read full article.