Good point. So what is the actual cost of the phone at the point of importation, on which the tariffs are applied?
From Grok...
*The cost for Apple to manufacture an iPhone in China varies by model, but recent estimates suggest the bill of materials (BOM) and assembly for the iPhone 16 series ranges from about $416 to $485 for models like the iPhone 16 and iPhone 16 Pro Max (256GB). This includes components like the display, processor, camera, and battery, plus labor and factory overhead. For example, the iPhone 16 Pro Max has a production cost around $485, with key components like the display and camera module each costing about $80. Labor costs are relatively low, estimated at $10–30 per unit, as assembly is done by partners like Foxconn, where workers earn roughly $10/hour on average.”
So 125% tariff would raise the cost of an iPhone by about $500!