Despite a temporary pause on select tariffs, Apple continues to face mounting challenges due to the escalating US-China trade war—challenges that could impact global iPhone pricing and production.
The tech giant finds itself in a particularly vulnerable position as tariffs drive up manufacturing costs in China, the company’s primary production hub for the iPhone. Analysts warn that Apple lacks viable short-term alternatives to completely avoid tariff exposure, and even if the company is granted exemptions, price hikes on iPhones are likely—both in the US and internationally.
The Office of the US Trade Representative, which has previously granted Apple exemptions for certain products, declined to comment when contacted by Ars Technica about any exemption requests submitted for 2025.
Currently, the US imposes tariffs of up to 145% on Chinese imports, while China has retaliated with tariffs as high as 125% on American goods. With tensions escalating and no resolution in sight, Apple remains caught in the crossfire of ongoing trade negotiations and retaliatory policies.
The situation is further complicated by the stalled TikTok deal, which requires approval from Chinese authorities. The delay has drawn criticism, with Senate Intelligence Committee Vice Chair Mark Warner (D-Va.) telling The Verge that the hold-up “violates the law” and endangers national security. Meanwhile, China appears optimistic that more global business will shift toward its economy as a result of the US’s hardline stance on trade.
Trump’s Tariff Strategy and Apple’s Role
President Trump continues to defend the tariffs, claiming they will bring manufacturing jobs back to the U.S. and strengthen the economy. Central to this vision is the idea of Apple—arguably the world’s most valuable company—shifting iPhone production to the US.
White House Press Secretary Karoline Leavitt pointed to Apple’s recently announced $500 billion investment in the US over the next four years as evidence of the company’s willingness to localize production. “If Apple didn’t think the United States could do it, they probably wouldn’t have put up that big chunk of change,” Leavitt told reporters, according to Bloomberg.
Apple has yet to publicly comment on how tariffs are affecting its operations and declined to respond to inquiries from Ars Technica.
