Penal tariffs could drive up iPhone prices: Trump consultant waves off

Does Apple increase iPhone prices due to expected punitive tariffs? According to the head of the head of the Trump government, this will not be the case: Apple will “shoulder the burden of these tariffs and not the customer,” said Kevin Hassett, director of the National Economic Council (NEC), in one Interview by CNBC. After all, the offer is “elastic” if you consider “that Apple has a factory somewhere that produces a fixed number of iPhones that the company definitely has to sell – which also happens,” argued the economist.

Apple is said to consider higher iPhone prices

This prediction of the economic advisor also seems to be intended as a warning to Apple: According to recent reports, the manufacturer is considering raising the prices of the iPhone 17 series. It is planned to refer to new functions and technology and not to mention tariffs. Apple has not increased iPhone prices in the United States for many years.

The Trump government already exerts pressure on US companies to swallow the additional costs through punitive tariffs and in no way to submit to end customers. The aim of the tariffs is to relocate production to the USA, and Apple should also make the iPhone back on the home market after Trump’s performance.

Trump’s “little problem” with Tim Cook

In order to escape high tariffs on imports from China, Apple relies on significantly expanded iPhone end assembly in India. Even in the current business quarter, the group wants to practically complete the US demand with iPhones assembled in India, as Tim Cook confirmed to financial analysts.

At Trump, the plan comes to little love: he has already “tolerated all of these works” that Apple has built in China over the years, the US President nagged Qatar in mid-May. According to the New York Times, the Apple boss had previously rejected Trump’s invitation to accompany him on the trip to the Golf region. At the end of last week, Trump then threatened that Apple tariffs in the amount of “at least 25 percent have to pay to the United States” if iPhones are still not “made in USA”. “Everyone” is now pretending to be a disaster “tiny tariffs”, noted Trump’s business advisor. However, this is only a strategy to download the duty. “We don’t want to hurt Apple,” said Hassett.