iPhone Price Surge? Trump Tariffs Threaten AI

New US tariffs on China, mirrored by retaliatory measures, could dramatically impact tech prices. Analysts predict the iPhone could skyrocket to $3,500, potentially hindering AI advancements.

Following President Trump’s recent tariff announcements targeting numerous countries, including China, the tech world is bracing for impact. The US is imposing a 34% tariff on Chinese goods, prompting China to respond in kind, effectively raising the total tariff rate to 54%.

While major tech companies like Apple, Samsung, and Google have diversified their manufacturing locations, they still heavily rely on Chinese components. This dependence means increased costs across the board, inevitably affecting smartphone prices.

Wedbush analysts are calling this the worst crisis for tech in 25 years, surpassing even the dot-com bust, the Great Recession, and the COVID-19 pandemic. Unlike previous tariffs, these measures directly target the tech industry, potentially stifling the AI revolution.

These tariffs on Chinese and Taiwanese goods could inflate costs by 40-50%. While companies might absorb some of this, consumers will likely bear the brunt. A Pixel 9 Pro, currently priced at $999, could jump to $1,499 if tariffs remain and potentially increase.