Would you pay $2,300 for an iPhone? That price may soon become reality.

President Donald Trump’s sweeping new 54% tariff on Chinese goods just hit American wallets where it hurts. This time, it’s Apple’s crown jewel—the iPhone—under threat.

Most of Apple’s 200 million iPhones are made in China. Trump’s latest tariff move, combining the original 20% rate with a fresh 34% blow, has turned the heat up on imported tech.

Now, analysts warn, iPhones could face their steepest price hike ever.

Analysts Warn of Massive Price Jump

Wedbush Securities analyst Dan Ives didn’t mince words. He predicted that the price of an iPhone could soar by as much as 43%.

That means a premium model, currently retailing at $1,600, could soon cost $2,300.

Even Apple’s cheapest new phone—the iPhone 16e—might jump from $600 to $858. That’s a painful hit for inflation-weary buyers already struggling with high grocery and gas bills.

“This isn’t a minor bump,” Ives said. “It’s a potential shockwave for the U.S. smartphone market.”

Apple’s Dilemma: Raise Prices or Eat the Cost

Apple now faces a brutal choice.

It can absorb the cost of the tariffs, which would anger shareholders. Or it can pass it on to customers, risking slower sales.

Analyst Angelo Zino at CFRA Research believes Apple can only shift 5% to 10% of the added cost to buyers. The rest? Either Apple pays or it delays any increases until the iPhone 17 drops this fall.

Apple has not yet responded to media inquiries.

Wall Street Reacts—And It’s Ugly

Apple’s stock tanked 9% Thursday, closing at $203.18. That’s its worst one-day performance since September 2020.

Investors are rattled. The new tariffs sent shockwaves through the entire market, triggering a broad selloff across tech and retail sectors.

Rosenblatt Securities analyst Barton Crockett said investors expected Apple would get special treatment—just like during Trump’s first term. But that hasn’t happened.

“This is the opposite of kid-glove treatment,” Crockett wrote. “Tariffs could cost Apple up to $40 billion.”

No Exemption for Apple—Yet

During Trump’s first term, the White House left iPhones off the tariff list. That’s not the case this time.

The current administration hasn’t granted Apple any exemptions—at least not yet.

Zino believes negotiations are likely. He even says an exemption could help Trump cool the markets if panic gets worse.

“If anyone can get a break, it’s Apple,” he said. “But this doesn’t feel like Trump 1.0.”

China Tariff Shock Hits at the Worst Time

Trump’s 54% tariff is the highest U.S. duty imposed on any country in recent history. It affects a wide range of consumer goods—from shampoo and toys to household appliances and phones.

But iPhones may be the most visible casualty.

According to Counterpoint Research, American consumers will feel the pain almost immediately. The tech research firm called the move a “no-win situation” in an already difficult economy.

U.S. Doesn’t Make iPhones—And Won’t Anytime Soon

There’s another problem: the U.S. doesn’t make smartphones.

Production remains concentrated in China, Taiwan, South Korea, Vietnam, and India. Apple has no large-scale manufacturing in the United States.

So even if the goal is to shift production home, experts say that’s a fantasy.

“There’s no cost advantage to manufacturing in the U.S.,” said Neil Shah of Counterpoint. “We’d need massive subsidies and cheap labor. Neither exists.”

Moving iPhone Production to U.S. Would Take Years

Dan Ives agrees. He says moving just 10% of Apple’s production to the U.S. would take three years and cost $30 billion.

He called the idea of U.S.-made iPhones “a fantasy tale.”

“For American consumers, a $1,000 iPhone may become a thing of the past,” Ives said. “This is political posturing that could backfire on everyone.”

Apple Invests in the U.S.—But It’s Not Enough

In February, Apple said it would invest $500 billion in the U.S. The plan includes a new factory in Texas and 20,000 research jobs.

CEO Tim Cook even attended Trump’s inauguration earlier this year.

But none of that has insulated the company from the tariff fallout. As it stands, Apple remains exposed—along with millions of consumers.

If the tariffs stay in place, the price of the world’s most popular smartphone may soon become unaffordable for many.

Is a $2,300 iPhone the New Normal?

If Apple passes the full cost of tariffs onto buyers, that $2,300 iPhone may soon hit store shelves.

Consumers will have to decide if brand loyalty is worth the price.

While some may hold off on upgrades, others could shift to Android. Either way, the mobile market is on edge.

With the iPhone 17 expected this fall, all eyes are on Apple’s next move—and whether the White House blinks before shoppers do.