The ‘reciprocal tariffs’ imposed by US President Donald Trump on countries could backfire on a homegrown name, a brand that is synonymous with USA – Apple.

As per a report by a news agency, the company, with most of its manufacturing in China, can face a surge in price by 30-40% if the costs were to be passed on to the consumers.

Trump announced the new tariff on countries on April 2, the day he declared ‘Liberation Day’ from the unjust tariffs on US exports by other countries.

As per new rates, China was hit by a 54% tariff, whereas India, which has also started producing and exporting iPhones, was hit by 26%.

Analysts at Rosenblatt Securities, a US-based financial institution in New York, concluded that a new tariff on China could raise the prices of Apple products, especially iPhone, by 43%, according to the agency.

If the 43% hike is passed on to customers, the latest iPhone 16, which costs $799 (₹68,000), would cost $1142 (₹97,500). 

Similarly, iPhone 16 Plus which costs $899 (₹76,000) would be priced  at $1,285.57 (₹1.1 lakh),  iPhone 16 Pro will see a price hike from $999 (₹85,000) to  $1,428.57 (₹1.22 lakh), iPhone 16 Pro Max will cost $1,714.57 (₹1.46 lakh) from its current price of $1,119 (₹95,000).

The most expensive iPhone, 16 Pro Max with 1 terabyte, which costs $1,599 (₹1,36,500) now, would soar to around $2,300.

For India, the price hike would look something like this

Notably, Apple’s shares closed in red by 9.3% on Thursday, the lowest since March 2020, as per reports.

The agency noted that despite increased production in countries like Vietnam and India, China is still, by far, the largest manufacturer of iPhones.

Moreover, new tariffs have also been imposed on Vietnam (46%) and India (26%), which can also add to iPhone’s prices.

As per the agency, this price hike in turn can benefit Apple’s biggest competitor, the South Korean tech giant Samsung, as South Korea (25%) is facing a lower tariff than China.