On March 4, 2025, the U.S. government announced an additional 25% tariff on a range of Canadian imports, with electronic components bearing the brunt. This policy quickly rippled through the global consumer electronics supply chain, and Apple became one of the most affected tech giants. Apple has long relied on Canadian high-tech manufacturers for some of its key components, such as high-performance RF modules, battery materials and sensors. The sudden increase in tariffs not only raised its production costs, but also directly transmitted to the terminal selling price, causing market shocks.
1. Soaring prices: consumers' intuitive feelings
According to data from Canadian telecommunications retailers, since mid-March, the iPhone 15 Pro series has increased prices across the board in Canada, with an increase of about 8%-12%. Take the iPhone 15 Pro Max (256GB) as an example, which was priced at $1,799 before the adjustment, and is currently priced at $1,999, an increase of $200. Although Apple has not officially explained the details of the price increase, it is widely believed in the industry that the move is in response to the rising supply chain costs caused by the US tariffs.
Figure: Comparison of iPhone models in Canada in 2024 and 2025
2. Supply chain breakpoints: vulnerability exposure under globalization
Apple relies on a complex and efficient supply network around the world. Although most of its core assembly links are concentrated in China and India, the key components come from multinational cooperation, especially Canada has technical advantages in the field of new materials and precision manufacturing.
According to Export Development Canada, Canada's exports of electronic components to the U.S. will total $4.7 billion in 2024, of which more than $900 million will be contributed to Apple-related products. After the tariffs, the supply cost will increase by an average of 18%-25%, which will directly impact the operating model of enterprises that rely on the transit of parts from the United States and Canada.
Chart: Value Trend of Canadian Electronic Components Exports to the U.S. (2020-2025)
3. Strategy adjustment: Apple's double game with Canada
Under pressure, Apple is trying to respond to price pressure by:
Shift to other parts suppliers: for example, negotiate alternative supply agreements with Mexican and South Korean companies;
Improve inventory flexibility: purchase critical materials in advance and reduce reactivity;
Price Balancing Strategy: Maintain price stability in Europe and Asia, and raise prices moderately in North America.
But shifting supply chains doesn't happen overnight. The verification cycle of high-performance components is long and the switching cost is high, and Apple still needs to absorb the additional tariff costs in the short term.
At the same time, the Canadian government has also launched a number of support measures, such as providing loan interest subsidies for local electronics manufacturers, setting up a "domestic substitution fund", and promoting the "Buy Canadian" initiative to stimulate domestic consumption and attract international brands to continue local cooperation.
4. Damaged economic and trade relations: the geopolitical game behind the technological war
This escalation of U.S.-Canada tariffs is not an isolated incident, but an extension of a new round of games in North America around the high-tech sector. On the grounds of "national security" and "protection of key technologies", the United States has strengthened its review and restrictions on foreign imports in many areas. Canada, on the other hand, criticized the move as violating the principle of free trade, especially the impact on the existing USMCA.
Canadian academics and industry are worried that in the long run, this "internal friction" will weaken the overall competitiveness of North America. Especially in the face of the rise of Eurasian scientific and technological power, regional fragmentation will only lead to higher costs and delayed innovation.
5. Collective anxiety of consumers and businesses
For ordinary consumers, a $200 increase in the price of an iPhone may be tolerable, but if the price of mobile phones, tablets, smart watches and other products rises across the board in the future, it will materially change their consumption decisions. At the same time, enterprises, especially small and medium-sized suppliers, are facing more challenges in survival. Under the triple squeeze of exchange rate fluctuations, cost pressures, and slowing demand, many companies have postponed their expansion plans or considered exiting related business lines.
Conclusion: The global shock behind the price of an iPhone
The increase in the price of Apple's mobile phone seems to be just a "by-product" of the tariff policy, but in fact reflects the complex game faced by technology companies in the context of the ebb of globalization and the intensification of geopolitics. The U.S.-Canada tariff war has not only disrupted Apple's pricing and layout, but also reminded the entire industry that the security and stability of the global supply chain has become an unavoidable strategic proposition.
