Recently, many tech companies sighed with relief when U.S. President Donald Trump announced that certain tech products, including semiconductors, would be exempt from tariffs. While this decision may benefit some firms, it does not resolve the broader issues stemming from the ongoing trade war with China. This conflict continues to threaten the global economy, leaving many companies in precarious positions. Currently, Apple stands out as a key player potentially impacted by these tariffs.

Consumers are watching closely as the prices of upcoming iPhones may soar if the tariff situation remains unchanged. Apple faces a challenging dilemma: it could absorb the costs associated with higher manufacturing expenses or pass those costs onto customers. The potential for significant price increases, including the possibility of a $3,000 iPhone, is still uncertain. The landscape becomes even murkier with China’s recent threats to retaliate against companies that ally with the U.S.

This aggressive stance complicates matters further as the U.S. encourages other nations to limit their economic ties with China. In response, China has indicated that it will impose tariffs on any country that cooperates with U.S. actions intended to isolate them. This reality means that Apple is not yet safe from adverse effects. Although there is currently a 90-day pause on the tariffs, the uncertainty surrounding the trade war could render the production of iPhones in China increasingly difficult.

Since the majority of Apple’s units are manufactured there, any developments in China can significantly influence the entire iPhone supply chain. As this trade dispute continues, the outcome remains unclear. Nonetheless, the repercussions of this conflict will likely be felt first and foremost by consumers.