In pandemic-like scenes, consumers have been rushing to the shops and clearing the shelves of – no, not toilet paper – Apple products! This comes after ‘Liberation Day’, President Trump’s announcement on 2nd April of new global tariffs to ‘usher in a new era for the American economy’…
However, in a surprising U-turn on 10th April, the President declared a 90-day pause on most proposed tariffs (with the exception of China) to allow for negotiations to take place. Though a White House economic advisor confirmed that all countries should still expect to face a baseline 10% tariff.
The fear of a price hike on beloved Apple products triggered consumers into a mass buying spree, and naturally, investors got spooked too – with Apple’s market cap collapsing by $700 billion in the days following the announcement.
So, why could Apple be dealt such a significant blow from these tariffs if they come into play? Will CEO Tim Cook be protected by President Trump? Above all, will Apple Macs increase in price?
How has Apple been affected by new tariffs?
Apple has large manufacturing bases in some of the countries hit hardest by the President’s policy. Many of these locations produce and distribute Macs – let’s take a look at the tariffs that have been applied to them as of 10th April 2025:
- China – 125% tariff
- Vietnam – 46% tariff (currently paused)
- Malaysia – 24% tariff (currently paused)
- Thailand – 37% tariff (currently paused)
- Ireland – 20% tariff (currently paused)
Trump has previously protected Apple from trade wars and supply chain disruptions with tariff exemptions, but it still remains unclear whether Tim Cook will be able to secure the same treatment this time. Here’s how investors have reacted so far:
- Apple’s stock plummeted 19% in the three days after ‘Liberation Day’ – the worst drop over the same period since 2001.
- By Tuesday 8th April 2025, Apple’s share price had fallen to $175 compared with $223 a week previous, and was down 3% in afternoon trading.
- Investment firm Needham recently estimated that Apple’s fiscal 2025 earnings could fall by at least 28% if the company does not receive relief from the latest tariff regime.
Will Apple Macs go up in price?
The ultimate aim of Trump’s game is to force manufacturing back into the US. If this happens for Apple, it will be an extremely long and expensive process that won’t occur quickly enough to stop expected price rises. On that, Morgan Stanley analyst Erik Woodring predicts overall price increases for Apple products could be between 17-18%.
Meanwhile, other analysts have released figures claiming that iPhones and Apple Watches would need to be 43% more expensive to cover the cost of the tariffs. However, we think price hikes of this magnitude are unlikely, because demand would surely drop. Yet with no comment from Apple and no sign of any exemptions at this time, some form of price increase seems likely. We just don’t know when and how much.
Dial into cost-effective Mac leasing today
If you’re considering investing in Macs for your business, you’re on the way to boosting team performance and satisfaction. However with price surges looming, the strategic move is to act now – and Lease Loop can help you do just that, without the financial outlay.
We offer two flexible leasing solutions, giving you access to cutting-edge Mac technology while protecting your cash flow and boosting that profit margin. Get in touch today for a friendly chat about your needs and options.