The cost of Trump tariffs: Why your next iPhone could get a lot more expensive

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The dream behind President Trump’s sweeping tariffs is to bring high-tech manufacturing back to American soil. But when it comes to products like the iPhone, the global nature of their production means the reality is far more complicated—and expensive, the Wall Street Journal reported.

Take the iPhone 16 Pro, for example. For the 256GB version, Apple currently charges $1,100. But the cost of all the parts inside the phone—known as the bill of materials—was around $550 when the device was introduced, according to TechInsights. When you add the cost of assembly and testing, Apple’s total cost climbs to about $580. Despite that, Apple still turns a tidy profit thanks to its efficient supply chain and economies of scale.

But Trump’s new tariffs—currently totalling 54% on Chinese imports—could raise the cost of production to around $850 per phone, TechInsights estimates. That cuts deep into Apple’s profit margin, unless the company passes the added cost on to consumers.

Here’s a rough breakdown of where the iPhone’s components come from:

• Processor (Apple A18 Pro): Taiwan
• Display: South Korea
• Storage: Japan
• Memory: US
• Rear cameras, battery, main enclosure: China Many of these components would still be subject to tariffs, even if final assembly were moved to the US And that’s where the bigger problem begins.

"It’s a massive, mammoth undertaking," says Barton Crockett of Rosenblatt Securities. "It’s not clear you can make a competitively priced smartphone here."

Even Apple’s efforts to shift assembly to places like India are about diversifying risk, not abandoning China altogether. A truly American-made iPhone would require producing every single component domestically—an almost impossible feat given the global supply chains involved.

So what does this mean for consumers? In short: higher prices. Whether through direct cost increases or squeezed margins that get passed on, the average consumer is likely to foot the bill for Trump’s industrial policy.

While some argue the long-term benefit of reshoring manufacturing justifies the short-term pain, the economic math remains tough to reconcile. Until then, your best bet might be to hold onto your current phone for as long as possible.

Because if the tariffs hold, your next iPhone might cost a bajillion dollars—or close to it.