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With President Trump's global tariffs looming, consumers are left wondering: Should I buy electronics now? For at least a few Apple fans, the answer is yes, with Bloomberg reporting an uptick in traffic at Apple Stores.
Most iPhones sold in the US are shipped from China, Vietnam, and India, and starting April 9, units coming in from these countries would be tariffed at 54%, 46%, and 26%, respectively. (Trump has also threatened to increase tariffs on Chinese goods from 54% to 104% if China doesn't drop its own retaliatory tariffs.)
Apple has not confirmed whether it will raise prices. One analyst predicts the highest-tier iPhone could cost as much as $2,300. As a result, several Apple Stores across the US experienced a holiday-level rush over the weekend, according to employees who spoke with Bloomberg. "Almost every customer asked me if prices were going to go up soon," one retail worker says.
According to The Times of India, Apple flew in five cargo planes of iPhones and other products from India and China in late March to beat the new tariffs. These shipments have stocked Apple’s US warehouses for several months and insulated “the company from the higher prices that it will need to pay for new shipments under the revised tax rates,” the Times says.
However, with the iPhone 17 expected in September, Apple will likely have to navigate tariffs on its next-gen smartphone. The Wall Street Journal reports that going forward, Apple plans to ship more iPhones from India to offset the costs of China tariffs. However, almost 90% of all iPhones are assembled in China. Even if it sends all India-made iPhones to the US, that would only meet 50% of US demand. Apple is working to shift production away from China, but that can't happen overnight, and Trump's tariff strategy is unpredictable.
More details about Apple's strategy to mitigate the tariff situation can be expected on its May 1 earnings call, Bloomberg notes.