Can iPhone prices double the price to Trump's new 125% tariff? We do math

U.S. President Donald Trump imposed a pause on “reciprocal tariffs” today, but he taxed Chinese goods to 125% in the latest escalation of the two countries’ trade war. Experts say you should expect to pay more for your next iPhone.

Trump announced a 90-day pause on his social media platform, with all countries except China, “those countries are not retaliating in any way in form or form.” China, which makes most of its products, has been increasing every tariff this year by increasing tariffs on U.S. products.

“Trump is playing hard ball with China, which is disturbing on many levels,” Key Financial certified financial planner and CEO Patti Brennan said in an email. “As for Apple, it is expected that the price of its products will double.”

Apple has begun to transfer some of its manufacturing industries to other countries, including India and Vietnam. These countries should have been hit by their own tariffs today – Vietnam's tariffs rose by 46% and India's 26% – but were turned away. Trump imposes a 10% benchmark on imports.

While experts don't want costs to rise at a rate of 1 to 1, tariffs on Chinese goods and other countries after the moratorium expires – you should expect a significant increase. However, it is not clear how much the exact tariffs will actually have on prices. For example, if prices rise lead to a plunge in demand, experts point out that Apple and other producers can lower their prices to remain competitive.

If you buy a new Apple device or imported gaming system on the market (such as the Nintendo Switch 2 or PlayStation 5 Pro), this is how tariffs can raise prices and what you should be preparing for.

Read more: Apple shoppers reportedly buy iPhones amid imminent tariffs

How much can the tariffs on iPhone prices increase? We do math

If the full cost of the tariff is passed on to shoppers, we will see prices of Apple products made in China rise by 125%. Apple has moved some of its production to other countries, but most iPhones are still made in China.

If all Chinese tariffs apply, it may affect the cost of the iPhone:

However, iPhones are much more expensive than just where they are made. Apple-derived products come from a wide range of countries that may face tariffs after a pause. Tariffs on goods do not necessarily mean that prices will rise by the same amount. If companies want to stay competitive, they can absorb some costs to keep prices down.

“In terms of tariffs, it won’t be as expensive as one-to-one,” said Ryan Reith, vice president of IDC’s global device tracker suite group. “Mathematics is not as clear as tariffs.”

Will other technical products still see prices rising?

Smartphones are not the only devices that expect price increases due to tariffs. Best Buy and Target warned consumers last month that they expect all prices to rise after the latest round of tariffs came into effect. The tariff rate hike in February has prompted Acer to announce that it is raising the price of laptops.

Apple announced last month that it had cut $100 on its new MacBook Air last month, the day after the final round of tariffs came into effect. In an attempt to convince Trump to “exempt” the latest tariffs, Apple announced in February that it would expand its manufacturing operations in the U.S. in the next four years.

“They have promised $500 billion to the U.S. manufacturing, and Apple has no carvings,” Brennan said. “They will have to transfer most of this kind of expenses to consumers.”

However, regardless of the exact quantity, we hope that China's tariffs on goods will be converted into higher prices for consumers. This means that the technologies you use every day, such as imported smartphones, laptops, TVs and kitchen utensils, may become more expensive this year.

What's wrong with the tariffs?

Trump announced a 10% benchmark tariff on all imported goods and the “mutual tariffs” of more than 180 countries on April 2, which he called “liberation day.” He has long touted tariffs, even if the trade deficits and increased revenues to offset tax cuts, although many economists say tariffs could lead to higher prices and could ultimately harm the U.S. economy. Shares plummeted after Trump announced the news as the market was less responsive to the widespread tariffs.

Trump has taken a particularly firm stance on China, which has been subject to tariffs ordered by Trump in his first term in office. He began in February with a 20% tariff and then announced a 34% tariff on Chinese goods last week. He increased the tariffs by another 50% earlier this week, before the 125% tariffs on China fell today. After each of Trump's announcements, China responded with its own tariffs.

In theory, tariffs are intended to affect other countries financially because their goods are being taxed. 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.

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 on hand and need to use a credit card or buy it right away, pay later to avoid tariffs, experts say to make sure you have the money to pay before you can start generating interest. With the average interest rate on your credit card currently exceeding 20%, the cost of large purchase financing can quickly eliminate any savings you buy before the price rises due to tariffs.

“If you fund this fee on a credit card and cannot be fully paid in one to two months, you may end up spending more,” said Alaina Fingal, an accountant, founder of Organized Currency and a member of the CNET Currency Review Board. “I recommend you stop at any large purchases until the economy is more stable.”

Even if prices rise, one way to save on Apple products 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.”