Why You Shouldn’t Panic in the Face of Tariffs
You’ve probably heard a thing or two about the current tariff situation . You may know that the Trump administration has been imposing tariffs on countries around the world since February . For example, what started as a 10 percent tariff on China has increased more than tenfold. In other countries, tariffs were threatened, imposed, and then suspended, all seemingly random. It’s chaotic and has real consequences for the stock market, businesses and consumers.
It’s hard to keep track of every development, but you’ve probably heard talk of price increases, especially when it comes to consumer goods. You may have heard that prices for products like iPhones are going to skyrocket, and if you want to avoid that, you should buy a new iPhone today. You may feel the pressure when you read the headline about Apple flying iPhones on planes before the tariffs take effect . Again: chaos.
Will devices become more expensive?
Here’s the thing: no one knows exactly what will happen here. No one even knows which tariffs will remain and which are up for debate: As I was writing this article, Trump announced a 90-day pause on virtually all reciprocal tariffs he has imposed around the world, with the exception of China, which he raised from 104% to 125%. However, the general 10 percent tariffs still apply here.
This may mean that the situation is not as dire for products and goods that are produced or originate from countries where the pause is in effect. For example, if your goods come from India , you don’t have to worry about the 27% tariffs that went into effect Wednesday at midnight—just the original 10%. The same goes for Vietnam , which was hit with a 46% tariff.
While sweeping tariffs for most countries are currently off the table, most US trading partners are still dealing with tariffs of some kind, including, of course, China. This means companies can pass on the costs of these tariffs to consumers, whether it’s a 10% tariff or a 125% tariff.
If the iPhone 16e you’re eyeing comes from India, for example, the $599 price could rise 10% to around $660. However, if it comes from China, that 125 percent tariff could add about $749 to the total, or raise the price by somewhere around $1,348. Suddenly, Apple’s “budget” iPhone was anything but.
Of course, this assumes that a company like Apple passes on every cent of the tariff to consumers. This is where the situation continues to get worse: It is impossible to predict how companies will react to these tariffs until they go into effect. In fact, rather than raising prices, some companies are suspending sales in the US altogether .
However, experts expect companies to raise prices as tariffs make it more expensive to import goods and products. Some companies have already confirmed this. Acer announced that it would raise prices by 10% back in February : how will the new tariffs affect this price increase? I can’t guarantee the price of the iPhone 16e will more than double, but it probably won’t cost $599 anytime soon.
You probably don’t need to buy anything new
Reading the above, it may seem like now is the time to buy something new. It’s always tempting to buy the latest and greatest technology on the market, especially when the price of that technology can skyrocket at any moment. But in all likelihood, you don’t have to buy a new device right now.
I have a few important points in mind. First, if the technology you already own works for you, don’t feel the need to buy something just because it will cost more to upgrade in the near future. If your smartphone, computer, tablet, TV, etc. works fine and meets your needs as is, there is no need to update. You’ve probably spent a significant amount of money on the device you’re now reading this about: if you weren’t planning on buying a replacement before the tariff scares, you’re better off holding onto it for a while longer.
Even if your technology is outdated, there are some things you can do to extend its life. For example, if you’ve had your smartphone for a while and it starts to slow down but lasts fewer hours on a charge, replace the battery. A new battery can obviously improve overall battery life, but it can also improve performance since some smartphones slow down their processors to compensate for aging batteries. A win-win. Another quick tip? Be mindful of your storage: Maxing out any device’s internal storage can cause problems, so make sure you give your device’s internal drive some room to work.
For a device as complex as a laptop, there are many steps you can take to improve performance . You can wipe your system and start over, just in case any bloat is weighing down your computer; you can take advantage of power-hungry apps like Chrome to manage your productivity; and, if you have the technical ability, you can even hack it by cleaning the fans and reapplying thermal paste. You might be surprised at how simple maintenance can improve the performance of an old laptop.
Buying a new device
However, the other side of the coin is when you actually need to buy something new. Perhaps you crashed your smartphone or your laptop died, and a new device is the best solution. Or maybe you just need a new device and are trying to figure out the best way to buy it, despite the threat of higher prices on the horizon. However, before you go to the store and buy the latest device, I highly recommend that you consider a new device that is not that new.
Now might be a good time to buy last year’s technology or a used device. Technology across the board has gotten so good that not only are they likely to last longer than before, but annual updates aren’t that massive. The iPhone 15 Pro isn’t much slower than the iPhone 16 Pro, and the 14 Pro isn’t much slower than the 15 Pro, let alone the 16 Pro . Of course, you may notice some performance gains in parallel. But if you really don’t care about the camera control button , Apple Intelligence support , or the latest and greatest hardware, last year’s (or the year before) iPhone might be your move.
Smartphones are indeed a good example of the longevity of the new era of technology. Companies like Samsung and Google only supported their smartphones for a few years. Both now guarantee software updates for seven years. While Apple never makes any official guarantees about how long it will support any given iPhone, the company also tends to support its devices for many years. For example, the iPhone XR, XS and XS Max are older than six years, but they still run the latest versions of iOS. This doesn’t mean you should buy the iPhone XR and expect the same experience as the iPhone 16; rather, these devices last much longer than before.
While buying last year’s model is a great move, the used market is also a great place to look. There are stores that sell certified refurbished devices, such as Amazon , Best Buy , and even Apple , which come with a limited warranty. You can find even better deals at second-hand markets like Reebelo or Back Market . If the device you’re eyeing can handle the tasks you need, it can be a great way to save on your new purchase.
These devices will be cheaper than new devices now, but tariffs could also affect their prices. If prices for the latest technology rise sharply, older or used models may become more valuable and their prices may rise. However, last year’s laptop sitting in Amazon’s warehouse has already cleared customs and will not be directly affected by tariff increases in any country.
Sometimes new is best
This doesn’t mean you should never buy the latest device. In many cases, this makes the most sense: for example, I wouldn’t be so frugal about smart technology, given that companies with more experience are abandoning their older devices entirely . You also don’t want to buy an older version of the device that is incompatible with your new devices. Don’t waste your money on an outdated router that can’t offer you the internet speeds you pay your ISP for.
New technology is also new: you don’t have to do the mental math to think about how long it might be supported based on the original release date, and you don’t have to worry about compatibility issues. If you’ve been thinking about buying a used car, there’s no need to worry about the previous owner messing something up that the seller overlooked (or didn’t mention). This is the latest the company offers – bells and whistles and all.
It also helps when it makes financial sense to buy the latest technology in the market. If your carrier offers you a deal that offers no financial difference between the latest smartphone or last year’s smartphone, of course you should choose a new one. Who knows what they will offer you when smartphone manufacturers raise prices.
In fact, as great as Apple’s M-series lineup is, I still recommend the latest MacBook Air M4 to most people . At $999 for the latest hardware (and 16GB of RAM) it’s a fantastic value, enough that I’d usually suggest it over the M2 or M3 Air. However, Apple could easily raise the price of the MacBook Air due to tariffs. If so, then poof! This is great value.
Should you rush to buy something new? Probably not
Let’s use the above as an example: If you need a new MacBook right now, I’d suggest buying the M4 MacBook Air while it’s still $999. If you ‘re thinking about buying a new Mac but your current laptop is working fine, wait. Even if Apple eventually raises prices, there’s a great MacBook Air M2 or M3 that will be worth the money you pay for it.
This is how I think the current tariff situation should be approached. These devices may become more expensive, but you shouldn’t waste money on things you don’t need to beat inflation. Buy it if you need it, wait if you don’t. If the price goes up, consider an older model. You’ll get a good deal and be able to upgrade your technology when you really need it.