Apple may soon face a major pricing dilemma. According to analysts, new tariffs announced by former President Donald Trump could drive the cost of the iPhone 17 Pro beyond $2,000. These tariffs—enacted under the International Emergency Economic Powers Act—place steep duties on imports from China and other countries central to Apple’s supply chain.
The most affected item? The iPhone, Apple’s best-selling product. With China accounting for about 90% of iPhone production, a 54% tariff on Chinese imports puts Apple in a tough spot.
Analysts Predict Sharp Price Increases
Rosenblatt Securities estimates a 43% price increase across Apple’s product range. If correct, the base iPhone 16 model would jump from $799 to over $1,140, while the iPhone 16 Pro Max with 1TB storage could hit $2,300.
Even Apple’s budget model, the iPhone 16e, might rise from $599 to over $850. That’s more than the current price of the standard iPhone 16.
However, not all experts agree. Neil Shah from Counterpoint Research believes a 30% hike would be enough to absorb the new costs. Meanwhile, Angelo Zino from CFRA Research expects smaller price adjustments in 2025 due to customer pushback.
Apple’s Global Production Faces Pressure
Although Apple has started expanding production in India, Vietnam, and Thailand, China still handles the majority of its output. India produces about 10% to 15% of iPhones, but tariffs on Indian imports sit at 26%—lower than China’s rate but still significant.
Due to the legal route Trump used to impose the tariffs, Apple currently has no clear way to request an exemption. The only possibility would be a direct presidential order, which seems unlikely given Trump’s statements.
What’s Next for Apple?
As the situation unfolds, Apple may need to adjust prices globally to protect profits. Whether consumers will accept a $2,000 iPhone remains to be seen, but one thing is clear—Apple’s pricing model is about to change.
