The cost of buying an iPhone in the US will remain stable for now, thanks to a 90-day tariff pause between the United States and China. Both countries agreed to reduce existing tariffs significantly, halting months of tension that had threatened to raise prices on consumer tech, including iPhones.
US tariffs on Chinese goods will drop from 145 percent to 30 percent, while China will cut its tariffs from 125 percent to 10 percent.
This agreement directly impacts Apple. The company was facing higher import duties on essential components such as processors and memory chips, as well as a 20 percent “fentanyl tariff” on devices made in China. That meant total tariffs could have reached 145 percent. With the pause in place, Apple avoids a major cost hike on iPhones and other products in the near term.
Tariff Pause Brings Short-Term Relief
US Treasury Secretary Scott Bessent confirmed the 90-day suspension, calling the talks “constructive” and stating that both sides committed to reducing existing tariffs by 115 percent. China’s commerce ministry added that new measures will begin by May 14, and it will roll back non-tariff actions taken since April 2024.
This move follows warnings from the Trump administration that exemptions were temporary. Apple, along with other tech companies, was at risk of absorbing steep import costs or passing them to consumers. Now, with the 90-day window, Apple can hold pricing steady and avoid immediate disruption.
Oil prices and stock markets reacted quickly. Hong Kong’s Hang Seng Index jumped 3.34 percent, and oil surged over 3 percent as traders bet on cooling tensions.
Apple’s Long-Term Strategy: Move Production Out of China
Even with the tariff pause, Apple continues working to shift production out of China. According to the Financial Times, Apple plans to manufacture most US-bound iPhone 18 units in India by late 2026. The company aims to double production in India and reduce its reliance on Chinese factories, which currently account for 85 percent of global iPhone output.
Challenges remain. Apple’s suppliers face quality control issues, Indian labor laws, and delays caused by Chinese export restrictions. However, with tariff risk still looming, the company has little choice. The recent US-China trade truce gives Apple time to scale its India operations and prepare for future disruptions.
As Commerce Secretary Howard Lutnick said, this pause isn’t permanent. Tariffs on tech products like the iPhone are still under review, and Apple’s supply chain will remain in focus. For now, prices are stable, but the long-term picture depends on how quickly Apple can shift production and how trade talks evolve.