The three largest U.S. phone carriers—AT&T, Verizon, and T-Mobile—are warning customers to expect price hikes in the coming months. Executives say rising tariffs and supply chain disruptions are forcing companies to pass higher costs onto consumers.
The warnings come amid growing economic uncertainty linked to new trade tariffs announced by President Donald Trump.
Why phone bills may soon increase
While smartphones have so far avoided direct tariffs, the ripple effects on tech supply chains are driving up costs across the industry. Verizon CEO Hans Vestberg confirmed that the company will not absorb any new tariff-related costs.
“If the tariff is going to be as high as they say on the handsets, we are not planning to cover that,” Vestberg said.
T-Mobile leadership shared a similar stance, noting that if tariffs expand to cover more devices or parts, customers will bear the burden.
Early signs of change at major carriers
Some carriers have already taken steps ahead of anticipated cost increases:
- Verizon has reported losing nearly 300,000 subscribers after raising prices earlier this year.
- AT&T reduced its autopay and paperless billing discount on April 24, cutting the discount from $10 to $5 for customers using debit cards.
- T-Mobile experienced a decline in wireless subscriber growth and a more than 5% drop in its share price in the first quarter.
Companies like Apple are also shifting manufacturing out of China, with plans to move iPhone production to India by 2026.
Economic pressures intensify
The U.S. trade war with China has led to tariffs as high as 145% on some imports. Additional levies on goods from other countries have increased uncertainty for American businesses.
Wireless carriers are facing intense competition as they offer promotions like price locks and bundled services to attract customers. However, many warn that further price increases are likely as supply chain costs continue to climb.
Consumers are advised to review their mobile plans, monitor upcoming billing changes, and consider available loyalty perks or promotions that could soften the impact of rising rates.
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