Trump Tariffs Could Triple iPhone Price to $3,500, Threatening AI Progress

Now that we’ve had the new Trump Tariffs for a few days, analysts are starting to weigh in on how these will affect consumers. One specific product that Wedbush believes will be hit hard is the iPhone. The firm believes that the iPhone cost would rise from $1,000 to $3,500, and that would slow down AI progress – not that Apple is making much progress on AI anyways.

This week, President Trump announced tariffs on virtually every country in the world, including a pair of islands that are only inhabited by Penguins. Of course, notably absent from this list are Russia and North Korea. The US is enforcing a 34% tariff on Chinese goods, effective April 5. Of course, China wasn’t going to be quiet about tariffs and decided to retaliate with a 34% tariff on the US, which brings the total tariff rate to 54% against the US by China.

The tariffs on China are really going to hit hard. While many tech companies, including Apple, Samsung, and Google, have moved their factories to other countries in Asia – like Vietnam – they still purchase a lot of components from China. Which is going to raise the price of different tech products, including smartphones.

Analysts believe this is the worst crisis in 25 years for tech companies

Wedbush has also said that they believe this is the worst crisis for tech companies in 25 years – essentially since the dot-com bust. That’s pretty incredible, since we’ve gone through the great recession and COVID since then. They are also noting that unlike the 1980s tariffs, they are now affecting tech, the AI revolution and the global industry pretty hard.

The tariffs on China and Taiwan will likely raise costs by 40-50%. That’s a bit high for companies to swallow the difference and let it eat into its profit margin. So your Pixel 9 Pro, which currently costs $999, could end up costing $1,499 in a year or two if these tariffs stick and don’t increase. They likely will increase as the US and China continue to spar.

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