Apple Faces 25% Tariff—But Will Consumers Pay the Price?

Apple Hit by Tariffs Again

Apple is now facing a 25% tariff on iPhones made outside the US, following President Trump’s push for domestic manufacturing. Despite the tax, Trump’s advisor Kevin Hassett claims the burden won’t fall on consumers.

Hassett: Apple Will Absorb the Cost

Hassett told CNBC that Apple "needs to sell" its iPhones, implying the tech giant would shoulder the tariff costs to maintain sales. He described the iPhone supply as “elastic,” suggesting that prices won’t change.

Reality Check: Can Apple Really Eat the Tariff?

While officials say Apple will take the hit, the economics suggest otherwise. Apple may either accept smaller profit margins or pass the cost to consumers via price hikes.

Other Companies Raising Prices

Unlike Apple (for now), companies like Logitech have already increased prices by 25%. Amazon sellers from China are doing the same, nullifying the “cheap imports” advantage.

Bottom Line

Despite government pressure, real-world trends show tariffs eventually reach consumers. If Apple follows suit, iPhone buyers could soon see higher prices.