Potential impact of tariffs on iPhone prices this fall
On Wednesday, a U.S. trade court ruled that the “Liberation Day” tariffs imposed by the Trump administration were illegal, but a temporary stay has been granted while arguments are prepared.
The Trump administration initiated sweeping tariffs soon after taking office. Following extensive negotiations, exemptions, and uncertainties, a recent ruling offered a glimmer of hope. However, as reported by CNBC, an appeals court has temporarily halted the ruling until June 9, when both parties must submit arguments regarding the case.
The court declared both the “Liberation Day” tariffs and earlier tariffs on Mexican and Canadian goods illegal, contending that the Emergency Economic Powers Act does not empower the President to regulate trade—a power constitutionally reserved for Congress.
This appeal and the subsequent stay prevented immediate market reactions to the ruling. The Trump administration’s next steps remain uncertain.
Apple finds itself at the center of this turmoil, as its substantial global supply chain will inevitably face repercussions from the high tariffs. The company disclosed a potential $900 million loss for the June quarter if conditions remain unchanged, and iPhone 17 prices may need to increase globally to offset any tariffs.
Presently, there are ongoing threats of two additional tariffs from the Trump administration that could impact Apple: one on all semiconductor imports and another on smartphones produced outside the U.S.
Since these tariffs are expected to stem from a legal investigation rather than the EEPA, they might take effect regardless of the trade court’s decisions. This summer promises to be complicated for Apple, although the WWDC event is likely to remain unaffected unless the administration implements charges on software updates.