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How Trump's trade war with China will hit tech prices

12 7
10.04.2025

President Trump’s escalating trade war with China is putting a spotlight on the various technology companies and products poised to feel the ripple effects of the ongoing conflict.

The Trump administration raised import taxes on China to 125 percent on Wednesday, sending technology firms scrambling to offset the impact on their prices.

While some companies may try to shift production to the U.S., industry observers say consumers will feel price hikes as the extra costs get passed to some of their most used products.

“China [is] the source for many of the electronics that are made. China has built up this massive supply chain and a manufacturing ecosystem that makes it efficient for them to produce electronics of all sorts,” Rick Kowalski, the senior director of business intelligence for the Consumer Technology Association (CTA), told The Hill.

Much of the attention is on Apple, which sits at the “eye of the tariff storm,” Dan Ives, global head of technology research at Wedbush Securities, said.

“While Apple has diversified its supply chain to other parts of the world including Vietnam, India and the U.S. ... the hearts and lungs of the Apple supply chain are cemented in Asia,” Ives wrote in a recent investors note.

Apple outsources much of its production process to Foxconn, a Taiwanese electronics manufacturer, to build the company’s popular iPhones, iPads, Macs, AirPods and other hardware in China.

More than 50 percent of Mac products and 75 to 80 percent of iPads sold by Apple are assembled in China, according to estimates by Wedbush Securities.

Under the tariffs, the price of Apple’s newest iPhone 16 Pro Max 256 GB could increase by as much as 56 percent, driving the price tag from about $1,199 to $1,874, UBS........

© The Hill