Minister Warns iPhone Prices Could Reach RM16K if Trump Continues Increasing Tariffs

With 24% tariffs imposed on Malaysia by US President Donald Trump, and a whopping 245% tariffs set on China, should we expect a higher price for an iPhone soon?

Minister of Investment, Trade, and Industry (MITI), Tengku Zafrul Aziz, said an iPhone can cost as much as a car if the US implements reciprocal tariffs on all countries.

In his Facebook video, Tengku Zafrul explained that components alone used to manufacture an iPhone come from all over the world, namely,

• chips from Taiwan
• screens from Korea
• batteries from China
• modems and memory from the US
• storage from Japan
• cameras from various countries which are ultimately assembled in China.

For illustration purposes only

With Trump setting different tariffs for different parts of the world, it’s hard to tell how much exactly an iPhone can cost. Tengku Zafrul, however, said that an iPhone can cost up to RM16,000, or approximately USD3,500, if the device is produced entirely in the US.

This is approximately 3 times the current price for an iPhone.

“This is because global iPhone prices usually follow US prices.”

Wait. So, are we going to pay that much for an iPhone soon?

At the moment, Tengku Zafrul said fans of Apple products can take it easy. This is because the US has recently granted exemptions to smartphone and computer components, especially from China.

However, the leniency might not stay for long.

“Trump can raise the tariffs at any time. We don’t know how long this exception will last,” he said.

Tengku Zafrul also said that Malaysia is an important component of the global supply chain, with semiconductors among the country’s main exports.

“For example, during Covid-19, the Ford vehicle factory was forced to stop operations because it could not obtain chip supplies from Malaysia.”

Tengku Zafrul is scheduled to visit Washington at the end of April to negotiate with the US government on the tariffs.

Recently, Trump claimed that China has entered the negotiations about the tariffs, saying that he has always maintained a good relationship with President Xi. However, the US President did not confirm if he was talking directly to President Xi.

Also read: Trump Claims Xi Jinping’s SE Asia Tour Aims to Mess With US, Here’s Why the Chinese President Is Visiting M’sia