iPhones Could Cost Up to $2,300 in the U.S. Due to Tariffs, Analyst Says

[bgillander]

I know you’re trying to be smart but egg prices have actually dropped $2/dozen

Well, the administration arranged egg imports from Turkey, Brazil, and South Korea to reduce those prices. Now unless they carve out the tariffs from those countries, they will just drive the prices back up with these tariffs.

US egg imports meant to drive prices down could be hit by tariffs

(Reuters) -U.S. President Donald Trump's new tariffs could apply to eggs being imported to ease a supply shortage, Agriculture Secretary Brooke Rollins said on Thursday, a move that industry experts said could boost prices just as they have started to decline from record highs. Rollins said in...

ca.finance.yahoo.com

 

[jntdroid]

…His methodology is laughable and has no basis in any economic theory. His formula to figure out the tariff was to take the trade deficit with the country for goods, divide that by the total goods imported from that country, and then divide that number by two. It has nothing to do with reciprocal tariffs. You bought his lie.

If they were truly reciprocal they would’ve been higher for each country, correct? So what’s the problem with coming up with a method to do less than that to avoid an even bigger shock to the system. Numbers are numbers regardless of how you come up with them. People keep complaining that this was too much out of one side of their mouth, then saying he’s an idiot because they’re not truly reciprocal out of the other side of their mouth. Which do you really want?

I would love to see said economic theory as well. I keep seeing people reference that without any data to back it up.

For what it’s worth, I’m not some Trump apologist and I’m not convinced this is a good move either. But I’m not seeing any great arguments from your side of the tracks other than claims filled with words like “laughable” and “economic theory” and “lie” - even though he said on national tv they weren’t truly reciprocal. So… 🤷‍♂️

 

[bgillander]

pretty easy solution. don't buy an iphone. we have to get int rates down before we have to re finance our debt in 2025. people are so short sighted.

The historical progression is that tariffs increase inflation and that increased inflation causes interest rates to go up, so interest rates seem more likely to go up for 2025. Hopefully they don’t, but the current policy seems unlikely to make rates go down, unless they take it further to the point of causing enough businesses to fail to cause enough unemployment that few people can pay the higher prices, at which point inflation should drop off substantially. That would be brutal, but is traditionally very effective, if one is willing to disregard the human cost, and that seems more and more common these days.

 

[bgillander]

Wondering what the cost would be if the opposite occurs and China removes all their tariffs? Sub $800 iPhone Pro Max?

Aren’t those import tariffs for China, that just increase prices for the people of China? Does China charge an export tariff on Apple products produced in China, because I cannot find anything indicating that they do. I would be interested if you have information indicating that they do, as export tariffs are unusual, since most countries prefer to encourage manufacturing in their country, not discourage it.

 

[bgillander]

If they were truly reciprocal they would’ve been higher for each country, correct? So what’s the problem with coming up with a method to do less than that to avoid an even bigger shock to the system. Numbers are numbers regardless of how you come up with them. People keep complaining that this was too much out of one side of their mouth, then saying he’s an idiot because they’re not truly reciprocal out of the other side of their mouth. Which do you really want?

I would love to see said economic theory as well. I keep seeing people reference that without any data to back it up.

For what it’s worth, I’m not some Trump apologist and I’m not convinced this is a good move either. But I’m not seeing any great arguments from your side of the tracks other than claims filled with words like “laughable” and “economic theory” and “lie” - even though he said on national tv they weren’t truly reciprocal. So… 🤷‍♂️

If it is true that “Numbers are numbers regardless of how you come up with them”, then no one here would complain if the iPhone really does end up costing $2300, or even more, because what does it matter what the number is, then.

Maybe I read the formula wrong, but I was under the impression that they are not reciprocal because they have nothing to do with whether the other country actually charges a tariff (in which case an actual reciprocal tariff would be to apply a tariff matching that tariff), but just whether the country sells more products to the USA than it buys from the USA. Since the USA has a fairly large population and probably the most consumer driven economy, it seems a stretch to expect that smaller, less wealthy countries would purchase or consume the same amount from them. That’s the part I find, strange, anyway, as you could easily be applying a tariff to a country that has a needed natural resource not even available in the USA, even if they do not tariff the USA at all, just because they are selling you something you need, but not buying anything from you as they have barely any consumer base.

If those penguins have uranium, you will pay extra for it, just because the penguins aren’t buying any fish from you. That just seems punitive on the American customer, more so than the penguins.

 

[majkom]

If they were truly reciprocal they would’ve been higher for each country, correct? So what’s the problem with coming up with a method to do less than that to avoid an even bigger shock to the system. Numbers are numbers regardless of how you come up with them. People keep complaining that this was too much out of one side of their mouth, then saying he’s an idiot because they’re not truly reciprocal out of the other side of their mouth. Which do you really want?

I would love to see said economic theory as well. I keep seeing people reference that without any data to back it up.

For what it’s worth, I’m not some Trump apologist and I’m not convinced this is a good move either. But I’m not seeing any great arguments from your side of the tracks other than claims filled with words like “laughable” and “economic theory” and “lie” - even though he said on national tv they weren’t truly reciprocal. So… 🤷‍♂️

What?
Multiple sources have suggested that import tariffs imposed by the European Union on US goods are far lower.

The World Trade Organization (WTO) previously said in a tariff profile that the EU’s trade-weighted average tariff rate in 2023 was 2.7%.

This rose to 8.4% for agricultural products, but was around 2.3% for non-agricultural products that year.

The European Commission said in Februarythat the average tariff rate is around 1% for both sides – that is, for European imports to the US and American imports to Europe.

 

[bgillander]

This is exactly what I’m struggling with. As a person in poverty, with a whole slew of outdated tech, I have a small “tech egg” of money to modernize my stuff, but kept waiting year after year for a release of things that would feel like I’d be good for the next 6-10 years.

I was really close to buying the Mac Studio that just came out, until seeing the rumors that the studio display might get updated next year. I’m going to feel like a fool if they release a much better display one year after buying the current one. The damn thing is already expensive as is.

Now THIS BS happens. 🤬

If you are truly in poverty, I would suggest you concentrate on getting out of poverty before you start to worry about getting any new tech. This is coming from a person that had trouble putting food on my own table for several months decades ago after losing my job, during a period that I believe still didn't technically qualify me as "in poverty".

Otherwise, you really should consider just getting a base M4 mini. Unless you are in a business getting well paid by the hour for output you create with it, the difference in speed of a Mac Studio shouldn't be worth the extra cost to most personal users, let alone someone that considers themseves even close to poverty. Since Apple made it nearly impossible to upgrade their computers after purchase I now usually buy the lowest model, rather than the mid to high-end models I used to purchase and upgrade myself for years after, and I have used the (fairly substantial) savings to just upgrade to another base model much sooner. My luck tends to mean I time my purchases poorly, even with the buying guides here, so the lower end purchases have also reduced my inevitable feelings of buyer's remorse, and your post does make it sound like that is potentially an issue to you. Good luck.

 

[upthetoffees]

Then tariffs get lowered and 1890 seems cheap. I see the plan..

 

[bgillander]

It hasn't started with Trump.

Much of it has, though. Many vacations have been cancelled in the last two months by Canadians who used to love to travel to the USA. I can't say I have ever seen such a dramatic shift in attitudes in Canada to anything, as I always figured most people were too laid back to talk about anything as much as they now seem to care. It's actually fairly surreal.

 

[geta]

No one cares as long as they'll only raise their prices for the American market.

 

[hagar]

Just do the patriot thing and buy at the new price. Buy baby buy 😂

 

[Manzanito]

Does it matter? Every time the administration changes as does the rules and laws they created get reversed.

How do you reverse the trust lost?

 

[stevet]

But Apple making cheap phones in China then is really' China's profit or Apple's? Or US companies paying next to nothing to people working on their banana or whatever plantations then importing it to the US? Or operating mines in Africa?

It’s both of their profit, but you are looking at it from the opposite direction. If Apple made that same ‘cheap’ phone in India and tried to export it into China, how ‘cheap’ would that phone be based on the tariffs?

 

[bgillander]

No one cares as long as they'll only raise their prices for the American market.

Has that ever happened? In the decades I've followed them, I've only seen Apple set US prices and then base their international prices on those US prices plus the local exchange rates and taxes.

 

[picpicmac]

Happy Liberation Day! (*cough cough*)

 

[racer1441]

Yeah, I don’t take any security or financial firm seriously on anything they say. They are getting wrecked on this deal but actual investors are flooding into the now much cheaper market.

Also, the headline is dumb. People are not longer running out like crazy to buy the new phone day one anymore.

Honestly, I would love if Apple would take the year off and spend the time fixing all their software screwups anyway.

This also assumes that deal can’t be made. Look at that dude in Canada, Ford. He went from wanting to shut down US electricity to basically slobbering over how awesome America is just this week!

 

[racer1441]

I'm sorry but moron said something this stupid? Apple would never price an iPhone this high because no one would pay it, and Tim Cook isn't as insane or braindead as this "analyst," apparently.

Good rule of thumb…. If it’s an article from an analyst just assume it’s two brain dead chimps throwing their own crap at each other to write an article.

I’ll take analysts seriously when they have stakes in being wrong. If Apple doesn’t start charging this much for the iPhone and he had to admit he was wrong and then also have a finger chopped off, then I would be more inclined to believe his projections.

 

[Cervisia]

Much of it has, though. Many vacations have been cancelled in the last two months by Canadians who used to love to travel to the USA. I can't say I have ever seen such a dramatic shift in attitudes in Canada to anything, as I always figured most people were too laid back to talk about anything as much as they now seem to care. It's actually fairly surreal.

That's true for Canada, but not every country. In Eastern Europe, USA's popularity was at peak after the fall of communism, maybe up until 2008. BLM, wokeness, and especially how they tried to export it hurt a lot already, democrats seemingly going full retard marxist didn't fly well in ex-communist countries. Of course this wasn't noticed in a country who elected Trudeau.

Then Trump came, and it became obvious, that it's both sides that went crazy. Jumping from one extreme to the another every four years hurts across the whole political spectrum. His closeness to Putin especially eroded US's reputation here. The real shift now is how it became accepted and mainstream to bash the US, but not at all only for things Trump does. I guess I don't have to elaborate on the stereotype of the average American on the other side of the pond.

 

[taliz]

*laughs in European*

 

[kuito]

If that’s the case I think I am gonna pass. I’m not for all the tariffs for sure, but Apple makes plenty of profit on these phones too.. so if it goes over $2k .. I just won’t buy it.

 

[Big_D]

It's even worse than not being intelligent.
He's mean, immature, vindicitive and petty.

Don’t hold back, tell us what you really think! 🤣🤣

 

[TallManNY]

This sort of sensationalist calculations of what prices "could" go to are almost just entirely clickbait. It isn't really how tariffs work. In pretty much no case does all of the tariff amount get passed entirely to consumers. Various parties throughout the supply chain eat some of the cost (in this case, with a good chunk of tariff getting eaten by Apple in the form of lower profits for their phones). Source: my company imports from overseas and we negotiate how that tariff gets covered between various potential parties (meaning the overseas seller, the US importer, then my company buying from the US importer). In practice we all take a bit of the pain. Though yes, my own company as the final user of the material (basically we sit in the role of the consumer) and the one who needs to order the material, my company takes the largest hit.

 

[TgeekB]

Happy Liberation Day! (*cough cough*)

I feel so…..free! 🤣

 

[dcingie]

Well, the administration arranged egg imports from Turkey, Brazil, and South Korea to reduce those prices. Now unless they carve out the tariffs from those countries, they will just drive the prices back up with these tariffs.

US egg imports meant to drive prices down could be hit by tariffs

(Reuters) -U.S. President Donald Trump's new tariffs could apply to eggs being imported to ease a supply shortage, Agriculture Secretary Brooke Rollins said on Thursday, a move that industry experts said could boost prices just as they have started to decline from record highs. Rollins said in...

ca.finance.yahoo.com

I’m surprised they didn’t just deplete our strategic egg reserve to artificially lower prices to score a quick, cheap win.

 

[bgillander]

I’m surprised they didn’t just deplete our strategic egg reserve to artificially lower prices to score a quick, cheap win.

Well, they probably don’t want them for vaccines, anyway.