The cost of the latest tech seems to rise every year — but this year smartphone and laptop prices could climb even higher because of tariffs.
This week, US President Donald Trump announced a 10% tariff on imports from China, after imposing a 10% levy last month. Experts expect that the cumulative 20% tariff hike will raise prices for Apple products manufactured in China, such as iPhones, iPads, MacBooks and AirPods, but not necessarily at the same rate.
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“The recent tariffs could increase Apple product prices by about 5-10% in the coming months,” Stephan Shipe, a certified financial planner and CEO of Scholar Financial Advising, said in an email. “Apple has traditionally absorbed most tariff impacts, but the company would likely need to pass a portion of these costs to consumers.”
Target and Best Buy warned consumers this week to expect higher prices for everything, after the latest round of tariffs went into effect. Last month’s tariff hike had already prompted Acer to announce that it was raising prices on its laptops.
If you’re in the market for a new Apple device or an imported gaming system, like the PlayStation 5 Pro, here’s how tariffs could raise prices, and what you should do to prepare.
What’s going on with tariffs?
Trump announced 10% tariffs on imports from China, which is in addition to the 10% duty on Chinese imports he announced at the beginning of February. China responded to each round of tariffs with its own set of tariffs on US products, including coal, crude oil and farm products like chicken, beef, soybeans, wheat and pork.
Products imported from China are already subject to tariffs that Trump ordered during his first term in office. The latest round of tariffs means prices on these goods could rise even higher.
The Trump administration also imposed 25% tariffs on imports from Mexico and Canada after pausing last month amid negotiations with both countries.
Tariffs, in theory, are designed to financially impact other countries since their goods are being taxed. Tariffs are paid by the US company importing the product, and this upcharge is usually — but not always — passed on to the consumer in the form of higher prices.
How much could iPhone and MacBook prices increase?
Experts expect that the tariffs levied on products from China — and Canada and Mexico — will translate into higher prices. That means the tech you use every day, like imported smartphones, tablets, laptops, TVs and even kitchen appliances, could get even more expensive this year.
What could that look like? If the full cost is passed on to shoppers, we could see a 20% increase in prices. For instance, the iPhone 16, which starts at $830 at T-Mobile, could jump up to $996. You can get a 15-inch MacBook Air starting at $1,099 on Amazon; a 20% hike would raise the base price to $1,318.
However, a 20% tariff on goods made in China doesn’t necessarily mean prices will go up by the same amount. If companies want to stay competitive, they could absorb some of the costs to keep their prices lower.
Apple announced a $100 price cut on its new MacBook Air today, despite the tariffs taking effect just a day earlier. In what was widely viewed as an attempt to persuade Trump not to impose the latest tariffs, Apple announced last month that it would spend more than $500 billion over the next four years to expand manufacturing operations in the US.
“Apple has positive earnings to absorb the higher prices on many of its products, but not all,” Patti Brennan, certified financial planner and CEO of Key Financial, said in an email. “Apple’s most important product is the iPhone. Readers should expect price increases either directly or indirectly. … How much remains to be seen.”
Read more: Higher Tariffs Could Make Going Solar More Expensive
Should you buy tech now to avoid tariffs later?
If you were planning on buying a new iPhone, gaming console, MacBook or other tech, buying it now could save you money.
But if you don’t have the cash on hand and plan to use a credit card or buy now, pay later plan just to avoid tariffs, experts say wait. With credit cards’ average interest rates currently over 20%, the cost of financing a big purchase could wipe out any savings you’d get by buying before prices go up due to tariffs.
“We’d only expect an increase of $50 to $150 on the top end of the Apple product line so the decision to buy would depend on immediate need vs. a tolerance for a small potential price increase,” Shipe said.
One way to save, even if prices go up, is to buy last year’s model instead of the newest release.
“If you aren’t planning to upgrade in the next year, there is no need to rush out to buy a new smartphone,” Shawn DuBravac, chief economist at IPC, a manufacturing trade association, said in an email. “Technology is naturally deflationary, meaning that over time performance goes up and prices generally go down for products of similar quality.”
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