Trump Tariffs to Hike iPhone Prices in UK by £663

April 07, 2025
iPhone

iPhone prices in the UK are expected to rise sharply following President Donald Trump’s introduction of new trade tariffs under what he’s calling “Liberation Day,” according to experts. The anticipated surge in cost could see the iPhone 16 Pro become up to £663 more expensive.

This comes after new data revealed the production cost for the upcoming iPhone 16 Pro has increased significantly — with figures ranging from £451 to £663 — due to Apple’s ongoing manufacturing in China. The country is among the hardest hit by Trump’s sweeping new tariff policy, which includes a 54% tax on imported Chinese goods. The tariffs are aimed at encouraging more domestic manufacturing by making foreign-made products less competitive.

Analyst Wayne Lam of TechInsights, reporting to The Wall Street Journal, said this increase in production cost will likely be passed on to consumers, pushing the current £1,099 price tag of the 256GB iPhone 16 Pro even higher.

Tensions between the U.S. and China have flared as a result, with Beijing strongly criticizing the move. China now faces up to 34% in tariffs across multiple sectors — though some of its anger has also been directed at levies placed on Taiwan.

Barton Crockett, a senior analyst at Rosenblatt Securities, told WSJ that shifting iPhone production to the U.S. would be a “massive, mammoth undertaking.” Apple would have to import essential raw materials such as cobalt for batteries and aluminum for the frame, making U.S.-based manufacturing logistically and economically challenging. Crockett also noted that it's uncertain whether Apple could produce a competitively priced iPhone domestically, especially given China's advantage in labor-intensive assembly.

On April 2, Trump announced his plan to impose new tariffs on £2.3 trillion worth of annual U.S. imports. A base tariff of 10% will apply to all countries, with additional “individualised reciprocal” tariffs targeting nations with which the U.S. runs a trade deficit. Some of these levies could reach as high as 50%.

Although the UK avoided the steepest of these tariffs, it still faces the 10% baseline charge on all exports to the U.S. However, Britain may have fared better due to relatively balanced trade relations with the States — and possibly successful backchannel negotiations.

The news of rising iPhone costs comes as some retailers attempt to soften the blow. Sky Mobile has dropped its monthly price on the iPhone 16 Pro from £30 to £28, with just a £12 upfront fee. Amazon also responded with a limited-time flash deal, cutting the price from £1,099 to £999.