Trump Tariff War / Tariff created havoc, iPhone will become 50% more expensive than MacBook!

Trump Tariff War: After the return of Donald Trump, a big change is being seen in American policies. On April 2, 2024, the Trump administration imposed heavy tariffs on many Asian countries including China, which has shocked the whole world. Imposing a retaliatory tariff of 26% on India and 34% on China has caused a stir in global trade equations. These policies can have the biggest impact on the technology sector, especially Apple's iPhone.

iPhone more expensive than MacBook?

The biggest challenge for Apple is that most of its iPhones are produced in China. Trump's new tariff policy has imposed an additional 34% duty on iPhones imported from China to the US. The Economic Times has reported, quoting the Wall Street Journal, that due to this the next iPhone could be up to 50% more expensive than the MacBook. That is, the phone which was already considered "expensive" can now go completely out of the reach of common people.

Why will Apple be directly affected?

At the end of March, Apple sent five cargos of iPhones and other products from China and India to the US. For now, this did not cause any major change in prices, but the effect of the increased tariff will be clearly visible as soon as the stock runs out. Apple has also started manufacturing in India and Vietnam, but China still dominates. Trump's tariff of up to 54% will lead to a sharp increase in the company's costs. If Apple does not get any relief in tariffs, it will have a direct impact on the company's profits, which can fall by up to 9%.

Direct burden on customers' pockets

Experts say that the burden of increasing production costs will ultimately be put on the customers. Even if exports increase in countries like India, the increase in iPhone prices can deal a severe blow to its sales. The biggest headache for Apple is that it has to keep prices under control while maintaining the image of a premium brand.

Trump's claim vs. market reality

Trump claims that these tariffs will benefit the US economy and domestic production will be boosted. But experts have a different opinion. They say that tariffs will increase inflation, which will directly affect the pockets of the common American consumer.

What next?

Now all eyes are on Apple to see how it resolves this rising cost. Will the company shift production to countries like India and Vietnam or will it recover the cost from consumers by increasing prices? One thing is certain—Trump's tariff plan has shaken not only business strategies but also the expectations of global consumers.