- An apple will face serious costs if Donald Trump sticks to his promise of common tariffs.
- Trump previously said he was considering tariffs of more than 60% on Chinese products.
- iPhone prices are likely to rise as a result, said economist Jacob Channell.
Apple got a break last time Donald Trump was in office, but the president-elect’s proposed tariffs could cost the tech giant dearly during his second term.
CEO Tim Cook joined the chorus of Tech Leaders Congratulate Trump for winning the 2024 presidential election. with post X on Wednesday. Maintaining a good relationship with the president-elect could be crucial for Apple, which secured the government exemption from costly tariffs during Trump’s first term. It is unclear whether the company will receive the same benefits this time around.
If Trump follows through on his promise to impose 10% general rates on all imported goods and 60% tariffs on Chinese goods, financial experts said the effect on Apple would be negative.
“If you think your iPhone is expensive now, it’s probably going to get a hell of a lot more expensive if the company that makes it has to deal with a 60% tariff on everything it imports from China,” said LendingTree economist Jacob Business Insider Channel.
Although Apple has reportedly explored India as an alternative base for iPhone manufacturing in Asiamany of its products are still manufactured in China. It also manufactures and sells its Mac computers in the country.
Greater China is a key region for Apple’s revenue — represents about 17% of its total sales in fiscal 2024. It has struggled in the area recently as local smartphone brands compete with the iPhone. The region still brought in $66.9 billion in sales in 2024. — although that’s down about 7.7% from the previous year.
If China decides to retaliate against the tariffs proposed by the Trump administration, it could also hurt Apple in the region.
“The new administration’s trade policies could likely have a material impact on Apple, especially with its critical dependence on China for both revenue and supply,” said Deepanjan Chatterjee, Forrester analyst.
Apple did not immediately respond to a request for comment on the election result from BI.
Trump’s victory isn’t just bad news for Apple. The technology company is currently facing an antitrust lawsuit in the US which accuses it of maintaining an illegal smartphone monopoly.
Both Channel and Chatterjee told BI that the Trump administration is likely to ease antitrust pressures facing big tech companies such as Apple and Google.
“There will likely be, generally speaking, less scrutiny on these types of business practices,” said LendingTree’s Channel.
With Trump not yet in office, Chatterjee said the world will have to “wait and see” what policies become official.