iPhone 17 Leaks: Could Trump Tariffs Make Apple's New Flagship More Expensive?

With Apple’s manufacturing pipeline deeply embedded in Asia, US President Donald Trump’s recent tariff threats are poised to have ripple effects across its pricing strategy.

For Apple, which continues to manufacture a large majority of its iPhones in China and is now scaling up production in India, the tariff crackdown could directly impact production costs.

Source : Majinbu Official

As anticipation builds around the upcoming iPhone 17 series, fresh leaks suggest Apple fans worldwide may need to shell out more than expected. A $50 price hike across most iPhone 17 models is reportedly on the cards, driven largely by escalating tariff tensions involving the United States, China, and India.

With Apple’s manufacturing pipeline deeply embedded in Asia, global trade developments—especially US President Donald Trump’s recent tariff threats—are poised to have ripple effects across its pricing strategy.

Trump’s Tariffs Target Apple’s Manufacturing Network

President Trump’s proposed 25 per cent tariff on Indian imports, set to take effect on August 7, is just the latest in a sweeping effort to reshape US trade relationships. China, too, remains under pressure, with the Trump administration planning an additional 40 per cent duty on goods suspected of being transshipped to the US via third countries, according to a latest report by AFP.

For Apple, which continues to manufacture a large majority of its iPhones in China and is now scaling up production in India, the tariff crackdown could directly impact production costs.

In fact, reports suggest the iPhone 17 will be Apple’s first model to be manufactured simultaneously in both India and China, marking a critical shift in its supply chain diversification strategy.

“India can take care of themselves… we want you to build here,” Trump reportedly told Apple CEO Tim Cook earlier this year, voicing displeasure over the tech giant’s expanding operations in India despite a $500 billion commitment to the US.

India’s Growing Role, But Uncertain Trade Future

Apple has been gradually ramping up local assembly in India through Foxconn’s facility in Tamil Nadu. The iPhone 17’s production in India, which is already underway, marks the first time the country will launch iPhones on a parallel timeline with China.

India’s elevation within Apple’s global supply chain has not come overnight. Over the past few years, Apple has shifted the assembly of older iPhone models—such as the iPhone 12, 13, 14, and 15—to Indian soil. Now, with plans to manufacture 25 per cent of all iPhones in India over the next few years, the country has become an indispensable part of the Cupertino giant’s production roadmap.

This shift has also been accompanied by significant infrastructure investments and closer coordination with local suppliers. Apple is reportedly working with multiple partners to localise components, reduce reliance on Chinese suppliers, and benefit from India’s improving manufacturing incentives.

However, the favourable momentum could be disrupted if Trump’s new tariffs go into force. The US President has accused India of “fuelling the war machine” by importing Russian oil and re-exporting it at a profit, calling India’s trade practices unfair. India, in response, rejected the accusations as “unjustified and unreasonable,” pointing to Western double standards in trade with Russia.

What It Means for Consumers

As global economic pressures tighten and Apple attempts to balance costs across a complex manufacturing landscape, end consumers are likely to feel the impact. Leaked pricing by tipster @Jukanlosreve indicates that the iPhone 17 standard model could start at $850, while the Pro and Pro Max may be priced at $1,050 and $1,250, respectively. These claims were also backed by Jefferies analyst Edison Lee.

A Brief Note on iPhone 17 Series Price Increase

A few days ago, Jefferies analysts revealed in their note that the iPhone 17 series could see a $50 price increase.

Additionally, WSJ reported last May that Apple was considering raising prices for the iPhone 17 series.

Apple's…

— Jukan (@Jukanlosreve) August 4, 2025

While Apple is reportedly securing cheaper components behind the scenes to absorb some of the tariff costs, a full offset seems unlikely. Analysts suggest that, except for the base model, most iPhone 17 variants will reflect the expected $50 increase.

A Broader Strategy Amid Global Uncertainty

The synchronised production launch in India and China is more than just a logistical feat—it’s a strategic move to manage geopolitical risks and safeguard against trade volatility. Apple’s diversification efforts, however, are now in the crosshairs of Washington’s evolving tariff regime.

With the iPhone 17 expected to launch in early September, the impact of trade wars and tariff hikes could reshape not just Apple’s pricing but the broader conversation around global tech manufacturing and economic nationalism.