the cost of the iPhone 17 has surged since Trump implemented his new tariffs strategy in April. Since then, Apple disclosed that these tariffs would inflict costs of up to $900 million in the June quarter and reach as high as $1.1 billion in the September quarter. Although the iPhone itself wasn’t directly affected by the tariffs, Trump has warned Apple of a potential 25% tariff on iPhone imports.
Some reports suggested that Apple intended to raise the prices of the iPhone 17 irrespective of the tariffs, but the company feared the negative perception it would create. Analysts also indicated that the iPhones set for release in 2025 might see a price increase of $50 compared to their earlier models. Quick calculations utilizing AI indicated that Apple could mitigate the tariff losses linked to other products by raising the global price of the iPhone 17 by $50.
August’s first week ushered in two significant updates. Initially, Trump declared a 100% tariff on semiconductors, the crucial components powering gadgets like the forthcoming iPhone 17 series. Exemptions would be granted to firms that relocate portions of their manufacturing to the U.S. In a separate announcement, Apple introduced the new American Manufacturing Program (AMP), part of its $600 billion investment plan for the U.S. economy. This total encompasses a fresh $100 billion pledge.
Apple’s substantial proposed investments for the next four years, coupled with the news that several essential iPhone components will be produced in
