Apple Product Prices Soar in the U.S. Following Trump's 10 Percent Import Tariffs

February 11, 2025 | 01:03 pm

TEMPO.CO, Jakarta - The policy of U.S. President Donald Trump to impose a 10 percent import tariff on all goods imported from China could potentially cause the prices of Apple products in the U.S. to rise, considering that most of its products are still assembled in China.

Previously, Trump had implemented a similar policy during his first term by imposing tariffs on thousands of products. At that time, Apple successfully lobbied to obtain an exemption. However, this time the 10 percent tariff applies universally to all products entering from China.

Initially, Trump threatened to impose import tariffs of up to 100 percent on silicon chips made in China, but the policy was not implemented. This was due to the potential impact on U.S. companies that produce domestic electronics with components imported from China.

Subsequently, Trump also threatened to impose a 25 percent tariff on all products from Canada and Mexico, and a 10 percent tariff on goods from China. Canada and Mexico responded with various measures, including promises to increase border protection against illegal migration and drug trafficking.

However, Canada and Mexico still threatened to impose retaliatory tariffs on U.S. products. Trump then suspended the tariffs on Canada and Mexico for 30 days, but the tariffs on China remained in place.

"President Donald Trump has agreed to hold off imposing 25 percent tariffs on Canada and Mexico for 30 days, pulling the North American neighbours back from the brink of a potentially damaging trade war," as reported by 9to5Mac, quoted on Tuesday, February 12, 2025.

"But a U.S. tariff of 10% on Chinese imports has come into effect, after a deadline of 00:01 EST (05:00 GMT) on Tuesday passed. Shortly after, Beijing announced it was imposing retaliatory tariffs on a raft of American products."

China also announced the possibility of an antitrust investigation against Apple and Google, which was announced just a few seconds after the tariffs took effect.

With this policy, Apple must pay an additional 10 percent for each product it imports from China. Several companies are expected to pass these additional costs on to consumers in the form of price increases. However, it is still unknown how Apple will respond to this. Another option is to absorb the cost increase itself, which would reduce its profit margin.

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