In a warning that sent ripples through the tech world, a top Wall Street analyst has predicted that the price of an iPhone could skyrocket to $3,500 — over PKR 1 million — if former US President Donald Trump’s latest trade tariffs are implemented.

Dan Ives, a senior analyst at Wedbush Securities, said in a strongly worded note on Friday that Trump’s aggressive push to bring manufacturing back to the US by slapping 50% tariffs on Chinese goods and 32% on Taiwanese imports could trigger an "economic Armageddon," especially for the tech sector. These countries play a crucial role in the global electronics supply chain.

According to Ives, the result would be devastating: consumer electronics prices could spike by 40 to 50%, and Made-in-America iPhones would cost more than three times their current price — jumping from around $1,000 to $3,500.

He described the proposed tariffs as a “bad science experiment” that could set the US tech industry back by ten years. The added costs and disruptions, he warned, would also slow down the AI revolution and negatively affect innovation across the board.

The planned tariff strategy has raised alarm on Wall Street, where there are worries that inflation can double by year-end, wiping out the economic gains achieved after the pandemic. One of the analysts noted the disconnect between Trump's distant factory dreams and immediate political considerations and cautioned that Americans might have a recession and a surge in prices before local manufacturing can experience any resurgence.

In a tit-for-tat move, China has reportedly hit back with 34% tariffs on US imports, adding fuel to the already tense economic climate.