Kuala Lumpur: Apple iPhones could cost as much as a car if US President Donald Trump persists with his “reciprocal” tariffs on Chinese goods, warned Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Aziz.
In an Instagram post yesterday, Tengku Zafrul said such a policy would cause a seismic shift to global trade, with ripple effects on Malaysian exports and consumer goods.
The minister noted analyst predictions that an iPhone made entirely in the US could cost up to US$3,500 (RM16,000), from the current US$549.
“But when prices go up in the US, other countries are also affected. This is because iPhone prices globally are benchmarked against the US,” he explained.
Aside from unaffordable iPhones, Tengku Zafrul said the corollary effect to Malaysia would be demand for its exports, which crucially includes semiconductors.
While he said that Trump appears to have exempted semiconductor chips at the moment, there was no guarantee that the mercurial US leader would not change his mind again later.
Reiterating his disagreement with the tariffs, Tengku Zafrul said open trade was essential for trading nations such as Malaysia.
During the April 2 announcement of Trump’s “Liberation Day” tariffs, Malaysia was hit with a 24-per cent rate. This later fell to the baseline 10-per cent after Trump announced a 90-day pause on all countries except China.