New US Tariffs on China Could Raise Prices for Apple Products in the US

On February 5, 2025, the US has implemented a 10% import tariff on all goods from China, following President Trump's decision. This move is expected to make most Apple products more expensive in the US market, as the majority of Apple’s products are assembled in China. While Apple has been working to diversify its supply chain, it remains heavily reliant on Chinese manufacturing.

Previously, Trump had threatened to impose a 100% tariff on Chinese-made silicon chips, but this was not carried out due to potential negative impacts on US companies. Instead, he announced a blanket 10% tariff on all goods from China, which has now taken effect after a deadline passed at 00:01 EST (05:00 GMT) on Tuesday.

In response, China has imposed retaliatory tariffs and announced potential antitrust investigations into Apple and Google. The new tariffs mean that Apple will have to pay an additional 10% on the cost of all products imported from China. It is not yet clear whether Apple will pass these costs onto consumers or absorb them, potentially reducing its profit margins.

Historically, Apple has often balanced between absorbing costs and raising prices. Given the current volatility in trade policies, it is likely that Apple will wait to see if the tariffs remain before making any significant changes.