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Investing.com-- Apple Inc (NASDAQ:AAPL) saw customers rushing to retail stores to buy iPhones, Bloomberg reported on Monday, as anticipation of a price increase, due to President Donald Trump’s trade tariffs, sparked anticipatory purchases.
Bloomberg reported that employees from several Apple store locations across the U.S. said customers had piled into stores over the weekend, expressing concerns that prices of Apple’s flagship products will increase sharply due to Trump’s tariffs.
The iPhone is by far Apple’s best-selling product, and is expected to see a price increase due to Trump’s tariffs on China, which accounts for about 90% of iPhone production.
Trump’s latest round of tariffs entail a cumulative 54% duty on all Chinese imports, which are to be borne by U.S. importers. Local businesses are widely expected to pass the costs on to customers.
The tariffs are set to take effect from April 9. Trump has also warned that he could further increase tariffs against China if Beijing does not cooperate with U.S. demands.
While Apple is expected to benefit from increased near-term demand, it was unclear just by how much this trend would lift Apple's top-line. The company has been grappling with a prolonged decline in iPhone sales, especially in China, due to increased competition and amid persistent delays in the launch of its flagship artificial intelligence features.
Apple's shares slumped nearly 18% in the past five days, as investors feared the impact of Trump's tariffs.