The recent announcement of tariffs by the US on Chinese goods has sparked significant reactions from analysts regarding its potential impacts on consumer prices, especially for technology products. The US has implemented a 34% tariff, which China has matched, resulting in a total tariff rate of 54% on goods coming from the US. This development has prompted concerns, particularly concerning the price of the iPhone, with some experts predicting a potential increase from $1,000 to as high as $3,500.

This week, President Trump announced tariffs affecting numerous countries globally, notably excluding Russia and North Korea. The tariffs on Chinese goods are set to take effect on April 5. While many tech companies, including major players like Apple and Samsung, have relocated some manufacturing operations to countries like Vietnam, they still rely heavily on components sourced from China.

This reliance means that the tariffs are likely to lead to increased prices for various tech products, including smartphones. Analysts from Wedbush argue that the current situation represents the most severe crisis for tech companies in the last 25 years, comparable to the dot-com bust. This perspective is noteworthy, especially given the economic challenges posed by the Great Recession and the COVID pandemic in recent years.

The analysts indicate that these tariffs are having a profound impact on the tech sector, particularly affecting advancements in artificial intelligence and the global technology landscape. The anticipated increase in tariffs on products from China and Taiwan could push costs up by 40-50%. This surge would be difficult for companies to absorb without passing the increased expenses onto consumers.

As a result, products such as the Pixel 9 Pro, currently priced at $999, might escalate to $1,499 in the coming years if these tariffs remain in place and continue to rise amid ongoing tensions between the US and China.