By Tae Kim

Two major wireless carriers had a clear message for their customers this week: President Donald Trump's trade policies could lead to higher prices for smartphones. On Tuesday, Verizon Communications CEO Hans Vestberg said the company wouldn't cover any significant increase in the cost of a phone from tariffs. "That's ultimately going to hit the consumer in the market," he said on a call with analysts and investors.

A day later, AT&T CEO John Stankey also said consumers are going to have to pay for a rise in handset prices from tariffs. "Unfortunately, for the customer, we're going to have to come up with some new ways for them to figure out how to digest that increase in pricing." Earlier this month, the Trump administration announced exemptions for some imported tech hardware products -- including smartphones, computers, and other items -- from the current tariff of 145% on China imports. However, chips and electronics are expected to be covered under a new sector tariff that will be announced in the coming weeks, officials said that weekend.

China in turn has put tariffs on U.S. imports. On Tuesday, Trump suggested the 145% tariff rate on China will "come down substantially," but said it wouldn't be completely removed.

Both AT&T and Verizon are large sellers of Apple iPhones, which are primarily manufactured in China.

Apple didn't respond to a request for comment on the CEOs' remarks about phone-price increases.

Write to Tae Kim at tae.kim@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

April 23, 2025 11:54 ET (15:54 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.