Estimates by the Kiel Institute for the World Economy, a German economic research institute, showed that the tariffs would lead to a 20 percent drop in exports from the European Union to the United States in the short term, as well as a more than 6 percent increase in prices in the United States.

U.S. President Donald Trump said on Friday that a 25% tariff he says he will impose on Apple will also apply to Samsung and other smartphone makers. Trump, talking to reporters in the Oval Office, also said he was fine with leaving a 50% tariff in place on the European Union absent a trade deal.

President Trump’s latest tariff maneuver all but ensures a price hike on new iPhones launching this year, experts say