A New Smartphone May Still Set You Back $2,000

U.S. consumers breathed a brief sigh of relief when the Trump administration announced tariff exemptions for smartphones and computers from its 145% levy on China — but a $2,000 price tag for a new smartphone may still become a reality anyway.

That’s because just two days later, the Trump administration said it will be imposing additional tariffs on semiconductor chips in the coming weeks, Barron’s reports.

Further, the CEOs of AT&T and Verizon — which are the largest sellers of Apple iPhones, which are primarily manufactured in China — said this week they will pass additional tariff costs on to the consumer.

“Unfortunately for the consumer, we’re going to have to come up with some new ways for them to figure out how to digest that increase in pricing,” said AT&T CEO John Stankey on an earnings call.

Verizon will not absorb any significant cost in phones because of tariffs, said Verizon Communications CEO Hans Vestberg. “That’s ultimately going to hit the consumer in the market,” Vestberg said.

Consumers should no go into panic mode, according to Brian X. Chen, lead consumer technology writer for The New York Times.

That’s because Apple, Samsung, Vivo, Xiaomi and other leading smartphone makers produce phones designed to last for 10 years, Chen says. Most American consumers replace their phones every three years, as a fading battery slows the processor.

Simply going back to the Apple store or a repair shop for a battery replacement is a smart alternative to buying an expensive new smartphone, Chen says. Apple will replace aged batteries in an iPhone under warranty for free, and most repair shops will do it for about $100.

Forgoing the newest bells and whistles and buying a refurbished phone for about $600 is another sound alternative. So is shopping for a better deal, experts say.

Lauren Benton, general manager at Black Market, said that sales of renovated iPhone 15 Pros were up last week, going for $639. Apple released that phone in 2023 for $1,000.

Become more conscientious about taking care of your phone, computer and tablet, recommends Ramit Sethi, a personal finance expert. “Buy the best and drive it into the ground,” Sethi said. “Holding that item for longer will drive down the overall cost of ownership.”

As for rushing out to buy a new Apple iPhone or technological gadget right now before the tariff sticker shock sets in, Sethi says: Don’t.

“These discussions remind me of someone seeing their entire house on fire, and what they are doing is calmly changing their shoelaces,” he said. “Panic buying an iPhone is number 662 on the list of things I would be doing.”