Could iPhones become as expensive as cars due to US tariffs?

Question

Accepted Answer

iPhones Could Reach Car-Like Prices Amidst Proposed US Tariffs

Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Aziz has warned that Apple iPhones could become as expensive as cars if US President Donald Trump proceeds with his proposed "reciprocal" tariffs on Chinese goods. This potential price surge stems from analyst predictions and the global pricing structure of iPhones, which are benchmarked against US prices. The policy could also significantly impact Malaysia's export market, particularly for semiconductors.
Potential Price Surge for iPhones

Analyst projections suggest that if iPhones were manufactured entirely in the US under the proposed tariff regime, their cost could skyrocket to approximately US$3,500 (RM16,000) per unit. This represents a dramatic increase from the current average price of US$549 for an iPhone. Such a scenario would render the popular consumer electronic device prohibitively expensive for many.
Global Pricing Benchmarking Mechanism

The minister highlighted that price increases in the US market would inevitably translate to higher prices in other countries. This is due to the established practice of benchmarking global iPhone prices against those set in the United States. Consequently, any significant tariff-induced price hikes in the US would create a ripple effect, affecting consumers worldwide, including in Malaysia.
Impact on Malaysian Exports

Beyond the direct impact on consumer goods like iPhones, the proposed tariffs could have a substantial adverse effect on Malaysia's export sector. The minister specifically pointed to semiconductors, a crucial component of Malaysian exports, as being vulnerable to a decline in demand. While semiconductor chips may currently be exempt, there remains uncertainty regarding potential future policy changes by the US administration.
Tariff Developments and Trade Policy

The context for these concerns includes a recent announcement by President Trump regarding tariffs, where Malaysia was initially subjected to a 24 per cent rate. This rate was subsequently reduced to a baseline 10 per cent following a 90-day pause on tariffs for all countries except China. Minister Tengku Zafrul has expressed his disapproval of such tariffs, emphasizing the importance of open trade for nations like Malaysia.

Reading history

Hide →

This history is cleared when the page is closed.

Could iPhones become as expensive as cars due to US tariffs?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends