Trump’s Tariffs Push iPhone Prices Skyward: A $2,300+ Reality in Europe
April 6, 2025 — The cost of an iPhone in Europe could soon exceed €2,300, a dramatic jump driven by the latest round of U.S. tariffs imposed by President Donald Trump. Announced on April 2 and set to take effect April 9, these duties—part of Trump’s “Liberation Day” trade policy—include a hefty 34% tariff on goods from China, where most iPhones are manufactured. With additional levies like Europe’s value-added tax (VAT) and existing import duties, the price of Apple’s flagship device is poised to soar, leaving consumers and analysts reeling.
Analysts at Rosenblatt Securities project that Apple may need to raise iPhone prices by up to 43% to offset the new U.S. tariffs. In the U.S., the iPhone 16 Pro Max with 1 terabyte of storage, currently priced at $1,599, could climb to nearly $2,300 (€2,170 at current exchange rates) if the full cost is passed on. In Europe, where prices already include VAT (typically 19-21%) and higher baseline import duties, that same model—retailing now at €1,689 in Italy or €1,649 in Germany—could easily surpass €2,300. Counterpoint Research’s Neil Shah estimates a minimum 30% hike is necessary to cover the duties, pushing even the base iPhone 16 (currently €969 in France) well above €1,200.
The tariff fallout stems from Trump’s sweeping reciprocal duties, which also hit Vietnam (46%) and India (26%), where Apple has shifted some production. With China still producing the bulk of iPhones sold globally, the 34% levy disrupts Apple’s supply chain, which has long relied on cost efficiencies from Foxconn’s factories. Experts suggest Apple faces a tough choice: absorb the hit to its 50% profit margins or pass it on, risking demand in a market already lukewarm on recent AI-driven upgrades. “It’s hard to imagine Trump blowing up an American icon,” Rosenblatt’s Barton Crockett noted, predicting a potential $40 billion revenue loss for Apple if negotiations with China or the White House falter.
In Europe, the sticker shock is amplified by local factors. Unlike U.S. prices, which exclude sales tax (added at checkout, averaging 6-8%), European prices bake in VAT and stricter warranty costs, historically making iPhones pricier—think €1,479 in France versus $1,199 (€1,131) stateside for the Pro Max pre-tariff. Posts on X speculate that Apple might spread the tariff burden globally, softening the blow to perhaps a 15% hike, but even that could push premium models past €2,300 when VAT is factored in. “Tariffs hit the cost, not retail,” one user clarified, suggesting a $300 (€283) increase is more realistic—still a steep climb.
Apple’s response remains unclear. The company could lean on its growing assembly lines in India or Vietnam, though those sites face their own tariffs and lack China’s scale. Stateside, Trump’s push to bring manufacturing home seems unlikely to sway Apple soon, given the years it would take to replicate China’s infrastructure. For now, European consumers eyeing an upgrade might brace for a price tag that rivals a mid-tier laptop—or hope Apple swallows some of the cost. As one X post quipped, “Time to run my iPhone into the ground.” With markets already shedding $5 trillion since the tariff news, the ripple effects are just beginning.
