The Pause on iPhone Tariffs Set to Expire After June. Should You Buy Now?

CNET

05-05-2025

Expect the iPhone to go up in price soon.
James Martin/CNET
Apple CEO Tim Cook can't give you any advice on how tariffs could affect iPhones after June. But expect prices to go up.
Cook confirmed on a May 1 earnings call that iPhones sold in the US are currently coming from India, and many Apple devices are currently exempt from tariffs on China. But he noted that some Apple products, including accessories, weren't exempt, and those levies are expected to increase Apple's costs by about $900 million for the current quarter, which ends in June.
He also said he couldn't predict what would happen after June, when the pause on President Donald Trump's reciprocal tariffs is set to expire.
But regardless of how much an impact tariffs have, don't be surprised to see iPhone prices go up, experts say.
"The iPhone is due for a price increase," said CNET Managing Editor Patrick Holland, who's been reviewing phones for CNET since 2016. "The entry level iPhone is $829 and has cost that much for years. The last time it had a price [hike] was in 2020."
If the price of an iPhone does inch up, you may not even realize it.
"[A price increase would] probably be buried in the promotional deals or the installment plans," said Ryan Reith, group vice president for IDC's Worldwide Device Tracker suite, which includes mobile phones, tablets and wearables. "Yes, it might cost 50 bucks more at some stage, but we spread that over time, and it's a monthly installment plan."
It's been just over a month since Trump announced his "Liberation Day" tariffs, launching a roller-coaster ride of raising and pausing tariffs on imports from nearly 100 countries. That included triple-digit levies for China, where Apple currently produces most of its products. India was among those reprieved temporarily from its 26% reciprocal tariff, but is still subject to a 10% tariff on all imports.
Apple did not respond to a request for comment for an earlier version of this story.
Regardless of where tariffs end up, you should be prepared for potential price increases on electronics. We have alternative options to help you save on them, including the iPhone.
Read more: Apple Is Moving Away From Its Fall-Only iPhone Launch Schedule, Report Says
How much could iPhone prices go up with tariffs? We do the math
If the full cost of current tariffs were passed on to shoppers, we could see anywhere from a 26% hike on Apple products manufactured in India to a 145% increase for those made in China. But currently, tariffs on goods from India have a 10% tariff and iPhones manufactured in China are still subject to Trump's 20% "fentanyl tariff" for the country's supposed role in allowing fentanyl to enter the US. Here's how that could potentially affect the price of the iPhone:
How could tariffs increase iPhone prices?
Current price Current 20% "fentanyl tariff" on goods from China Current 10% tariff on all imported goods iPhone 15 (128GB) $699 $839 $769 iPhone 15 Plus (128GB) $799 $959 $879 iPhone 16e (128GB) $599 $719 $659 iPhone 16 (128GB) $799 $959 $879 iPhone 16 Plus (128GB) $899 $1,079 $989 iPhone 16 Pro (128GB) $999 $1,199 $1,099 iPhone 16 Pro Max (256GB) $1,199 $1,439 $1,319 iPhone 16 Pro Max (1TB) $1,599 $1,919 $1,759
But there's a lot more that goes into the price of an iPhone than simply where it's assembled. Apple sources components for its products from a long list of countries, which could face higher tariffs after the pause. And a tariff on goods doesn't necessarily mean prices will go up by the same amount. If companies want to stay competitive, they could absorb some of the costs to keep their prices lower.
"It won't be as high as 1-to-1 in terms of the tariff increases," Reith said. "The math isn't as clear-cut as that on the tariffs."
When could we see prices go up?
It's unclear exactly when prices could go up but if companies sell out of devices produced before the tariffs, they may have to increase prices on products in tariffed shipments. However, even if Apple can't avoid tariffs entirely, it has ways to offset the impact through its services -- including its music, news and data plans -- according to supply chain expert Joe Hudicka.
"Apple will likely absorb some of the tariff costs up front to keep sticker prices stable, then pass the rest on to consumers gradually through service bundles, device longevity and ecosystem upgrades," he said. "Consumers will still pay, just not all at once."
It's also unclear exactly how much of an impact the tariffs will have on prices for all smartphones. If rising prices cause demand to plummet, experts note that Apple and other producers could reduce their prices to stay competitive.
Watch this: Buy or Wait Guide: How Tariffs Will Change Tech Prices and What to Do Next
01:21
What's going on with tariffs?
Trump announced a 10% baseline tariff on all imports plus reciprocal tariffs on imports from more than 180 countries on April 2, which he dubbed "Liberation Day." He quickly announced a 90-day pause on the reciprocal tariffs but left the baseline levies in place.
Trump's long touted tariffs as a way to even the trade deficit and raise revenue to offset tax cuts, although many economists say that tariffs could lead to higher prices and may end up hurting the US economy. Stock prices plummeted after Trump's announcement as markets reacted poorly to the sweeping tariffs.
Trump has taken an especially hard stance on China, which was already subject to tariffs that Trump ordered during his first term in office. He started in February, imposing 20% in tariffs, then announced a 34% tariff on goods from China in April. He added an additional 50% tariff before eventually landing on the 145% tariff against China. China has responded with its own tariffs after each of Trump's announcements.
The US Customs and Border Protection listed some key consumer electronics exempted from the reciprocal tariffs, but Trump said that those products would still be subject to a 20% fentanyl tariff. White House officials said the reprieve from additional tariffs was temporary and that those products would instead be subject to a "semiconductor tariff."
Some politicians have questioned this exemption, and last month, Sen. Elizabeth Warren sent a letter to Cook asking how Apple products were excluded after Trump said there would be no tariff exemptions.
Even before Trump announced the tariffs, Apple's biggest suppliers in India had shipped nearly $2 billion worth of iPhones in March, according to customs records. Reportedly, Apple may source its iPhones for the US market from India by the end of 2026 -- although perhaps not all of them.
Tariffs, in theory, are designed to financially impact other countries because their goods are being taxed. Tariffs are paid by the US company importing the product, and this upcharge is usually -- but not always -- passed on to the consumer in the form of higher prices.
Should you buy tech now to avoid tariffs later?
If you already planned to buy a new iPhone, gaming console, MacBook or other tech, buying it now might save you money. But if you don't need a new phone immediately, Holland recommends waiting.
"If iPhone prices rise, know that, like cars, the prices for used iPhones will likely rise, too," he said. "If Apple does raise its prices, you'll likely get more for your old iPhone when you trade it in, and that should offset any increased prices."
If you don't have the cash on hand and are considering using a credit card or buy now, pay later plan just to avoid tariffs, make sure you have the money to cover the costs before you start accruing interest. With credit cards' average interest rates currently more than 20%, the cost of financing a big purchase could quickly wipe out any savings you'd get by buying before prices go up because of tariffs.
"If you finance this expense on a credit card and can't pay it off in full in one to two months, you'll likely end up paying way more than a tariff would cost you," said Alaina Fingal, an accountant, founder of The Organized Money and a CNET Money Expert Review Board member. "I would recommend that you pause on any big purchases until the economy is more stable."
One way to save on Apple products, even if prices go up, is to buy last year's model instead of the newest release or a used one. And trading or selling a used one can help offset the cost even more.
"Apple has leaned into that with its Certified Refurbished program, much like the auto industry's used car model," Hudicka said. "This program helps extend the lifespan of devices, keeping customers in the Apple ecosystem longer while distributing the cost impact over time."