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The price of an iPhone is expected to soar under President Donald Trump Experts have cautioned about 'Liberation Day' tariff measures.
The expense of manufacturing their newest version of the beloved smartphone is expected to jump from $580 to $850. TechInsights analyst Wayne Lam informed The Wall Street Journal .
This is due to Apple producing its iPhones in China, a country that has faced impact with an astonishing 54 percent tariff on its imported items.
The technology behemoth would probably transfer these increased expenses to customers, raising the cost of a 256GB iPhone 16 Pro. ranging from $1,100 to a staggering $3,500, as stated by Wedbush Securities analyst Dan Ives.
The president asserts that his tariffs will encourage domestic manufacturing by raising the cost of imported goods.
However, as Apple would still require importing the raw materials, used to manufacture its devices According to experts, there isn’t an economic method for producing iPhones on American soil.
Shifting iPhone manufacturing to the United States would represent an "enormous and herculean task," senior research analyst Barton Crockett from brokerage firm Rosenblatt Securities told the Wall Street Journal.
'It’s uncertain whether you can produce a competitively priced smartphone here,' he said to the publication.
At present, the expense for assembling is approximately $30. China , however, this figure would jump up by tenfold if production were shifted to the US, according to Lam.
Apple did not respond to the WSJ's request regarding possible price adjustments due to the recently introduced tariffs.
On Liberation Day, Trump announced that international commerce and trading customs have triggered a nationwide state of emergency.
All nations will be confronted with minimum tariffs of 10 percent on every import from the US beginning this coming Saturday.
However, over 90 nations will face extra retaliatory tariffs aimed at rejuvenating America’s wealth by April 9.
Reciprocal tariffs, based on what the White House has stated , are required to balance bilateral trade deficits between the US and each of our trading partners."
Various nations—such as China—are set to face these tailored levies, which are determined by the White House when considering those countries' trading rules.
In reaction to Trump’s Liberty Day, Chinese President Xi Jinping announced that the nation would add on an additional 34 percent tariff on all US imports.
The fresh duty, set to start on April 10, mirrors the 'reciprocal' 34 percent charge introduced by Trump. These additional duties will be piled onto the current tariffs that have been placed on American products.
'China’s new tariffs stop short of full-blown trade war, but they mark a clear escalation - matching Trump blow-for-blow and signaling that Xi Jinping won’t sit back under pressure,' Craig Singleton, senior China fellow at the Foundation for Defense of Democracies, told the Associated Press.
Before Wednesday's announcement, Trump had previously impose two waves of 10 percent import tariffs on China.
Singleton cautioned, 'The more prolonged this situation gets, the tougher it will be for both parties to ease tensions without losing their dignity.'
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