Phone vendors worry over tariff crisis, seek FG’s actions

By Adeyemi Adepetun
• Want more regulations on the influx of Chinese products
• Analysts see iPhone cost over $3500/unit

Phone vendors in Nigeria have expressed fears over the 14 per cent tariff hike slammed on Nigeria by President Donald Trump of the United States of America.

While still battling a drop in sales in Nigeria due to naira depreciation, inflation and the volatility of the foreign exchange market, the operators said the recent Trump decision would stifle growth and possibly cause the closure of some businesses in the market.

Speaking with The Guardian yesterday, the Public Relations Manager, Computer and Allied Products Dealers Association of Nigeria (CAPDAN) at Computer Village, Ikeja, Ademola Olaifa, said operators are saddened by the development. Olaifa said the matter has been compounded because of the country’s current economic situation.

“Trump doesn’t mean well for us. The situation is currently very bad. Most of our goods come from America. The declaration has sparked many things and is going to affect us adversely, especially on our importation. In the last two weeks, we have been battling with high prices, and till now, we are not seeing any light at the end of the tunnel,” he stated.

With the hope that negotiation will help, the CAPDAN PRO said that like some other countries that are negotiating, Nigeria too should send delegations to America to negotiate, most especially on these goods, especially ICT devices.

According to him, to make matters worse, commercial banks have taken loans beyond the reach of the SMEs, with high interest rates. “I think the government should also look into this.”

Recognising the centrality and the importance of America to the global economy, Olaifa said that there is nothing vendors wanted from America that they couldn’t get from China. “Most of our products are currently from China, but as you know, most people see China products as inferior! We need help in that area, especially from FG, to help us regulate the imports we are getting from China. We want to see and get quality products from China. When we can’t get it from America, we switch to China. So, FG needs to help regulate that space so that Nigeria will not become a dumping ground for sub-standard products.”

Another player, Emeka Dunnis, said most of the vendors have suspended importation for now, aiming to study the market trends between now and the end of the quarter to the direction the globe is shifting towards, either China or Europe after America’s insensitivity.

Dunnis noted that devices shipped from America may soon be out of reach for so many Nigerians, “because how do you import an iPhone for $3500? How much are we going to sell, going by the crisis in the economy? How many people will be able to afford it? This Trump tariff situation is a serious issue.”

Indeed, because it takes the globe to build an iPhone as virtually all the components and parts are sourced outside America’s soil, analysts have submitted that the price will skyrocket.

With Trump’s sweeping global tariffs now in effect and impacting the prices of goods, a prominent tech analyst has warned that the price of an Apple iPhone could soar to around $3,500 if it were made in the U.S.

U.S.-made iPhones could cost more than three times their current price of around $1,000, he added, because it would be necessary to replicate the highly complex production ecosystem that currently exists in Asia.

“You build that (supply chain) in the U.S. with a fab in West Virginia and New Jersey. They’ll be $3,500 iPhones,” he said, referring to fabrication plants or high-tech manufacturing facilities where computer chips that power electronic devices are normally made.

Dan Ives estimated it would cost Apple $30 billion and at least three years just to move 10 per cent of its supply chain back to the U.S. — a move that could severely impact margins and product timelines.

Apple, which has long relied on Asian manufacturing hubs, is seen as one of the most exposed companies in the U.S.-China trade war.
Approximately 90 per cent of iPhones are assembled in China, with key components like processors and displays sourced from Taiwan and South Korea.

Apple’s stock has fallen by 25 per cent since Trump’s inauguration, as investors worry about cost inflation, supply chain disruption, and a potential slowdown in global demand.

Apple has already begun efforts to diversify production. In 2024, the company announced a $500 billion investment in U.S. operations aimed at reducing exposure to China. Additionally, India and Brazil have emerged as alternative manufacturing hubs.
While these countries still face tariffs, 26 per cent for India and 10 per cent for Brazil, they offer more stability compared to the increasingly volatile U.S.-China trade route.