Tariff war has tech buyers wondering what's next. Here's what we know
Technology permeates nearly every dimension of our lives. Yet, much of that tech, whether the finished product or the component parts, is made overseas and shipped to the US. This is especially true for the chips and processors powering all our devices and AI advancements.
As a result, the Trump Administration’s latest round of tariffs against international trade partners promises to impact the prices of your tech.
If you’re in the market for some tech products, you’re likely concerned about when the right time to buy is, when prices will increase, and how much they will increase. ZDNET scoured reporting from across the web that should help provide some clarity on your next steps.
Also: If you’re planning to upgrade your phone, you might want to buy one now – here’s why
The tariff impact
Because tariffs will impose higher prices on goods imported into the US, companies importing parts or devices from overseas will pay higher prices. How that trickles down to the consumer is a matter of how the company chooses to handle the additional costs.
Higher costs for goods typically leave companies with several options: absorbing the cost themselves, raising the prices of the items to offset the increased costs, or some combination of both approaches. Companies are unlikely to bear the full cost of the tariffs, so the result for the consumer is naturally a higher price tag for the product.
Some tech companies have already issued statements expressing their intent to increase prices for buyers. For example, in a February interview with The Telegraph, Jason Chen, the chief executive and chairman of Acer, said the company would raise its prices by 10% to cover the cost of the tariffs. In a March earnings call, Best Buy CEO Corie Barry said price increases for American consumers would be “highly likely.”
CNET: Buy or wait guide: 11 experts predict how tariffs will change tech prices in 2025 and what to do now
Other companies are shifting business operations to accommodate the tariffs. For example, Nintendo announced it was delaying its preorders for its upcoming Switch 2 in the US days after launching it to the public. The console is manufactured overseas, so the company is likely reevaluating pricing and costs.
A Wall Street Journal report claimed Apple was planning to send more iPhones to the US from India because of the high tariffs imposed on China. Since that report was published, Trump has passed sweeping tariffs across many more countries, including India. Vietnam, which also hosts major manufacturing plants for Apple, was also inflicted with tariffs in this latest wave.
As these examples show, price hikes for tech products are nearly inevitable. How much they will increase is to be determined, but some reports give us an idea.
A $2,300 iPhone?
You may have seen the headline about a $2,300 iPhone. Although Apple itself has not confirmed that — or any — iPhone price increase, the Reuters article that number came from does give users a clear understanding of how it reached that number — and why it may be a viable reality.
Analysts from Rosenblatt Securities told Reuters that if Apple passes on increased component prices to consumers, the price of an iPhone could rise by as much as 43%. That would place Apple’s iPhone 16 Pro Max, with a 6.9-inch display and 1 terabyte of storage, the top-of-the-line iPhone, at $2,300 if a 43% increase were added to the current $1,599 price.
Also: Are tariffs about to make your next iPhone way more expensive? It’s complicated
To give another example, a research analyst at TechInsights told The WSJ that the iPhone 16 Pro’s hardware (256GB) costs around $550, and the phone is sold to consumers for $1,100. The new tariffs could raise the hardware cost to $850; if the same profit margins are maintained, the overall price could increase accordingly — by around $300.
Beyond iPhones, tariffs are bound to permeate other tech products and industries more broadly. To help conceptualize the impact, CBS News put together a price tracker with graphs depicting how much the impact could be across products most impacted by tariffs. Right now, it includes fruits and vegetables, cars and trucks, and raw materials, such as aluminum, which is often used in tech products.
Should you buy tech now?
Ultimately, the decision to buy tech is a personal one that includes many other factors, such as your own personal needs and disposable income. However, using all of the information above, it is pretty safe to say that prices are expected to rise. So, if you really need something, right now could be a good time to buy.
PCMag: PC vendors scramble to figure out how much tariffs will cost them (and you)
There is also the option of buying refurbished as those products have already been manufactured, and are likely already within the US. Plus, those items often have hefty discounts. Sites like Gazelle and BackMarket are popular places to buy refurb devices.
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