Tariff madness: US customers rushed to buy iPhones, while Apple scrambled to fly iPhones in

A recent report said the prices of iPhones in the US could increase by as much as 43% if President Trump does not back down on his “reciprocal tariffs”. 

This figure could be even higher now since Trump has increased the tariff of goods imported from China by another 50 per cent (bringing the total amount of tariffs against China to 104%), where Apple manufactures most of its iPhones.

In response, customers in the US are reportedly rushing to Apple Stores across the country to snap up iPhones in fear that prices will increase in the future. Apple hasn’t announced any adjustments to the prices of its phones.

Employees at Apple Stores said customers were asking if prices were going out and that the atmosphere was similar to a busy holiday season.

Apple is not sitting still. The company reportedly flew five full cargo planes carrying iPhones from India and China in late March to avoid the baseline 10% tariff that went into effect on 5 April.

It’s unclear how much inventory Apple has in the US, but every phone it has in stock can help it and customers delay the impact of the tariffs. In fact, if Apple has enough inventory, it’s possible that it could put off raising prices until the iPhone 17, which is launching later this year.

As for us in Singapore, because of the complex global supply chain that Apple has in place, it’s hard to say if the prices of the iPhone will go up and by how much. That said, experts suggest that consumers in Singapore should brace themselves for price hikes.

Source: Bloomberg, The Times of India