Rising US-China Trade Tensions: Retail Experts Urge Consumers to Buy Smartphones Before Tariffs Increase

Taiwan • Business • 04/22 17:29
Rising US-China Trade Tensions: Retail Experts Urge Consumers to Buy Smartphones Before Tariffs Increase

In April of 2025, the United States imposed tariffs as high as 145% on Chinese goods, while smartphones were temporarily exempted. Retail expert Louis Ramirez advised consumers to act quickly if they need to buy a phone before prices change. Due to supply chain pressures, Apple has increased its inventory, leading to a record high in iPhone shipments. If the exemption is removed, iPhone prices could increase by 17% to 18%, affecting market demand. Worried about price increases, consumers have begun purchasing early.

Key Updates

04/23 01:59

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04/22 17:29

Rising US-China Trade Tensions: Retail Experts Urge Consumers to Buy Smartphones Before Tariffs Increase

In April of 2025, the United States imposed tariffs as high as 145% on Chinese goods, while smartphones were temporarily exempted. Retail expert Louis Ramirez advised consumers to act quickly if they need to buy a phone before prices change. Due to supply chain pressures, Apple has increased its inventory, leading to a record high in iPhone shipments. If the exemption is removed, iPhone prices could increase by 17% to 18%, affecting market demand. Worried about price increases, consumers have begun purchasing early.

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Consumer Anxiety in the Face of the Tariff Storm

In April 2025, the U.S. government implemented a new round of tariff measures on Chinese goods, imposing tariffs as high as 145% on certain imported items. Although tech products like smartphones, laptops, and semiconductors are temporarily exempt, the duration and future implications of this exemption policy remain uncertain. According to CNBC, retail expert Louis Ramirez stated, "If you're planning to buy a new phone, now is the time." He pointed out that prices could fluctuate dramatically in the coming weeks or months, especially if the exemption policy ends, leading to higher costs for consumers.

Apple's Low-Key Response and Supply Chain Pressure

As a leader in the global smartphone market, Apple Inc. finds itself at the center of this tariff storm. According to Yahoo Finance, Apple has been unusually silent on the tariff issue, not making any clear public stance. Analysts suggest this silence reflects Apple's high alertness to policy uncertainties.

Despite hints from the Trump administration about possible exemptions for Apple, the company has ramped up its inventory, achieving a record high in iPhone shipments in the first quarter. Market research institutions believe this is a strategic adjustment by Apple to address potential tariff risks.

However, relocating the supply chain is a complex challenge. According to TechNews and World Journal, 90% of Apple's iPhones are still assembled by Foxconn in China, and moving production lines to other countries like India or Vietnam would take decades and billions of dollars. Former Intel CEO Pat Gelsinger noted, "Rebuilding the supply chain takes time and capital; it's not something that can be done overnight."

The Dilemma of Price Adjustments

In terms of pricing strategy, Apple faces a dilemma. According to Wall Street analyst Daryanani, Apple is unlikely to change prices mid-product cycle and is more likely to make changes when the new iPhone 17 is launched. However, if tariff pressures persist, price increases may be unavoidable.

CNBC tech reporter Leswing pointed out that if Apple raises iPhone prices to $1,500, it could severely impact market demand. Wall Street analyst Evans estimated that without tariff exemptions, iPhone prices could rise by 17% to 18%. This would be a significant burden for consumers accustomed to starting prices of $999.

Immediate Reactions in the Retail Market

Facing potential price hikes, U.S. consumers have already started taking action. According to TVBS, some Apple stores have seen a buying frenzy, with consumers rushing to purchase iPhones ahead of potential price increases. Apple even chartered flights to deliver $2 billion worth of iPhones to the U.S. to meet the sudden surge in demand.

Retail expert Louis Ramirez suggests that if consumers plan to buy an unlocked phone, purchasing now can avoid potential future price hikes. He also noted that if buying through a telecom provider, there might still be opportunities for discounts through trade-ins or contract offers.

The Deep Impact of Tariff Policies on the Market

Although smartphones are currently exempt, the overall uncertainty in the trade environment continues to pressure the market. JPMorgan analyst Samik Chatterjee pointed out that even if some products are exempt, the overall economic slowdown and weakened consumer spending could still impact Apple's revenue. Apple's stock price has fallen 22% since the beginning of the year, reflecting market unease about the future.

Additionally, according to RBC Wealth Management data, smartphones account for 73% of the total U.S. imports from China, highlighting the U.S.'s significant reliance on Chinese manufacturing. If future exemptions are canceled, it will have a profound impact on the entire consumer electronics market.

Consumer Choices and Recommendations

In this context, consumers face the decision of whether to purchase devices early. According to Kiplinger, if your current phone is still working well and there's no immediate need to upgrade, you can delay the purchase. However, if you already have plans to buy, consider completing the purchase before tariff policy changes to avoid future price increases.

Ramirez concluded, "There's no need to upgrade your phone every year, but if you're already planning to upgrade, now is the time."

References

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