Donald Trump’s sweeping tariffs on exports from 75 countries have thrown the tech industry into disarray, with analysts predicting that the next iPhones could cost over $2,000. Apple reportedly airlifted 600 tons of iPhones—around 1.5 million devices—into the US to mitigate the impact. The White House later announced a temporary exemption for some electronic products from reciprocal tariffs on China, but confusion persists.
US Commerce Secretary Howard Lutnick said on Sunday that critical technology products from China, including smartphones and computers, would face separate new duties within two months. These would be part of sectoral tariffs targeting semiconductors and pharmaceuticals, falling outside the reciprocal tariffs. Experts note that manufacturing an entire iPhone in the US alone remains unfeasible, as Apple itself has stated.
The uncertainty has hit other companies hard. Nintendo suspended preorders for its Switch 2 console indefinitely, while Sony announced a 25% price increase for the PlayStation 5 in the UK, Europe, and Australia due to US tariffs on Japanese goods. Nvidia, a major loser in the trade war due to its globalised supply chain, announced plans to manufacture AI supercomputers entirely in the US, including at a Taiwan Semiconductor Manufacturing Company plant in Arizona.
Ironically, Trump’s push to reshore high-tech manufacturing may spur more immigration, as the US lacks enough skilled workers for semiconductor plants. A “tiny Taipei” has already emerged around the Phoenix facility. Meanwhile, the environmental toll of tech’s growing footprint remains a concern, with datacentres consuming vast amounts of electricity and water.
