You may be paying more for your Apple device soon. Experts weigh Trump's latest tariffs
The cost of the latest technology seems to rise every year – but the prices of smartphones and laptops are likely to rise due to tariffs this year.
This week, U.S. President Donald Trump announced a 10% tariff on Chinese imports after imposing a 10% tax last month. Experts expect the accumulated 20% tariff will increase the price of Apple products produced in China, such as iPhones, iPads, MacBooks and airpods, but not necessarily at the same speed.
Tax transactions this week
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“The recent tariffs could increase Apple product prices by about 5-10% in the coming months in recent months,” Stephan Shipe, a certified financial planner and CEO of Scholar Financial Chorming, said in an email. “Apple has traditionally absorbed the biggest tariff impact, but the company may need to transfer a portion of that fee to consumers.”
Target and Best Buy warned consumers this week that expect all prices to rise after the latest round of tariffs came into effect. Last month's tariff rate hikes have prompted Acer to announce that it is raising the price of laptops.
If you are on the market to buy a new Apple device or imported gaming system, such as the PlayStation 5 Pro, that's how tariffs can raise prices and what you should prepare for.
What's wrong with the tariffs?
Trump announced a 10% tariff on Chinese imports, a 10% tariff on Chinese imports he announced in early February. China responded to each round of tariffs on U.S. products, including coal, crude oil and agricultural products such as chicken, beef, soybeans, wheat and pork.
Products imported from China have been subject to tariffs ordered by Trump during his term. The latest round of tariffs means the prices of these goods may rise.
The Trump administration suspended 25% tariffs on Mexico and Canada after the suspension last month in negotiations with the two countries.
In theory, tariffs are intended to tax other countries' goods, thereby financially affecting other countries. The tariffs are paid for importing products from U.S. companies, and this UpCharge usually (but not always) transfers it to consumers at a higher price.
How much can iPhone and MacBook prices rise?
Experts expect tariffs on products from China, as well as Canada and Mexico, to translate into higher prices. This means that the technologies you use every day, such as imported smartphones, laptops, TVs and even kitchen appliances, may become more expensive this year.
What would that look like? If the entire cost is passed to shoppers, we may see a 20% increase in prices. For example, T-Mobile's iPhone 16 starts at $830 and may jump to $996. You can get $1,099 for the 15-inch MacBook Air on Amazon; a 20% rate hike will raise the base price to $1,318.
However, a 20% tariff on goods made in China does not necessarily mean prices will rise. If companies want to stay competitive, they can absorb some costs to keep prices down.
Apple today announced a $100 price cut for today's new MacBook Air, although tariffs could take effect just a day ago. Apple announced last month that it was widely seen as an attempt to convince Trump not to impose the latest tariffs, which it will spend more than $500 billion over the next four years to expand its manufacturing operations in the U.S.
“Apple has positive revenues that can absorb higher prices for many of its products, but not all,” said Patti Brennan, a certified financial planner and CEO of Key Financial, in an email. “Apple's most important product is the iPhone. Readers should expect prices to rise directly or indirectly. … how much more.”
Read more: Higher tariffs could make solar more expensive
Should you buy technology now to avoid tariffs later?
If you are planning to buy a new iPhone, gaming console, MacBook or other technology, then buying it can save you money.
But if you don't have cash and plan to use a credit card or buy it now, pay the plan later to avoid tariffs, experts say wait. Since the average interest rate on a credit card is currently over 20%, the financing cost of large purchases may eliminate any savings you buy before the price rises due to tariffs.
“We only expect $50 to $150 up at the top of the Apple product line, so the decision to buy depends on immediate demand, compared to tolerance for potential price increases,” Shipe said.
Even if prices rise, one way to save is to buy last year’s model instead of the latest version.
“If you don’t plan to upgrade next year, you don’t need to rush to buy a new smartphone,” Shawn Dubravac, chief economist at the Manufacturing Trade Association IPC, said in an email. “The technology is naturally deflated, which means that over time, the price will often lower the price of products of similar quality.”
