Massive tariffs imposed by President Trump on the rest of the globe went into effect today. Amidst significant economic uncertainty, many are wondering what this means for the cost of goods in the US—including Apple’s products like the iPhone. One analyst lays out Apple’s tariff response options, and his belief that costs may not rise too badly for consumers. Apple’s tariff response may be more restrained than some expect Jeff Pu at GF Securities has shared a new research note outlining various expected scenarios for Apple’s tariff response. He mentions the following two options as most likely: Apple raises global prices by a small amount (3-6%) to help cover its extra costs in the US or the company raises the US market’s prices by 10-19% In either case, Pu notes, the effect on consumers is better than many have forecasted. That’s because of this key line: We believe that Apple will absorb most of the cost, given that the supply chain’s margin is thin with rising production cost. In other words, Apple can’t offload its extra expenses on supply chain partners—at least not very much. And Pu doesn’t believe Apple can realistically raise prices too much without consumer backlash. He mentions the iPhone already facing a challenging market, in part due to delays with Siri’s AI upgrades causing lukewarm demand. 9to5Mac’s Take While estimates of the iPhone costing as much as $2,300 have been shocking numbers, and no doubt tariffs will have an impact. But ultimately, if Apple raises its prices too much, it will be giving a unique opportunity to other companies who are willing to eat the short-term cost in exchange for larger market share. And if any company has the financial cushion to absorb such additional costs themselves, it’s Apple. So price increases? Yes, but probably not anything too extreme. What do you think of Pu’s expectations for Apple’s response to tariff costs? Let us know in the comments. Best iPhone accessories Add 9to5Mac to your Google News feed.  FTC: We use income earning auto affiliate links. More.You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel