The global tech landscape faces a potential seismic disruption as President Donald Trump’s aggressive tariff policies threaten to send the cost of consumer electronics into the stratosphere.
A made-in-USA iPhone could soon carry a staggering price tag of $3,500, marking a more than 200% increase from its current average retail price of $1,000.
This dire forecast comes from Dan Ives, a top analyst at Wedbush Securities, whose recent note sent shockwaves across Wall Street and the global tech sector.
A High-Stakes Gamble on Economic Nationalism
Trump’s latest round of tariffs targets the heart of the global electronics supply chain. The plan includes an unprecedented 50% levy on imports from China and a 32% tariff on goods from Taiwan—two of the most critical hubs in the global semiconductor and electronics ecosystem.
These nations are not only the backbones of iPhone production but also the foundation of AI hardware, semiconductors, and advanced electronics.
According to Ives, the ripple effects could be devastating. “It’s about the entire technology infrastructure we’ve built over the last 30 years.”
Ives emphasized that companies reliant on these imports would be forced to raise prices by 40% to 50%, pass costs to consumers, and cut back on innovation due to shrinking margins.
A made-in-USA iPhone priced at $3,500 USD would exceed PKR 1 million, an amount far beyond the reach of the average Pakistani consumer.
34% Tariffs and Export Controls in Retaliation
China announced 34% tariffs on U.S. imports and implemented new export restrictions on rare earth elements and semiconductors—both of which are essential to producing smartphones, laptops, electric vehicles, and AI-driven technologies.
The tit-for-tat economic strategy heightens the risk of a full-blown tech cold war, with lasting impacts on global trade, inflation, and technological advancement.
He stressed that Trump’s policies could set the U.S. tech industry back a decade, wiping out years of innovation in AI, cloud computing, and software services.
Ives criticized the strategy as a “bad science experiment” that risks paralyzing innovation during a time when global tech giants are racing to lead the AI revolution. “AI doesn’t wait for politics,” he warned. “By the time U.S. factories are up and running, China, Europe, and India will have leaped ahead.”
