A Wall Street tech expert warned on Friday that the price of a made-in-the-USA iPhone could reach as high as $3,500 (over PKR 1 million) due to the latest trade tariffs imposed by President Donald Trump.
In a strongly worded message to clients, Dan Ives from Wedbush Securities expressed concern that Trump’s efforts to boost American manufacturing reminiscent of the 1980s through high tariffs could lead to what he described as an economic disaster, particularly impacting the tech industry.
Trump’s tariff strategy proposes imposing 50 percent tariffs on Chinese imports and 32 percent on goods from Taiwan, both of which are crucial for global electronics manufacturing. If these rates are implemented, it could result in a significant price increase across the consumer electronics sector. For instance, iPhones produced in the US could jump to $3,500 from the current $1,000, while overall tech product prices might rise by 40-50 percent, according to Ives.
He cautioned that these new trade barriers could set back the US tech industry by a decade, labeling the tariff approach as a misguided experiment that would hinder the progress of AI and the broader technology market.
The announcement has already raised concerns on Wall Street about the potential for inflation to double this year, undoing the economic improvements seen since the pandemic. Another analyst highlighted the disconnect between Trump’s long-term goals for reshoring and the immediate political landscape, warning that Americans might experience both a recession and increased prices long before any manufacturing resurgence occurs.
In response, China has reportedly implemented 34 percent tariffs on US imports.
Ives concluded his message by urging policymakers to reconsider the tariff proposals before they are enacted, stating, “US consumers will bear the consequences. This is not up for debate.”
For more daily updates, please visit our News Section.