T-Mobile Warns of Bad News for Smartphone Customers
The CEO of T-Mobile is joining the top executives of other major U.S. companies and warning about looming bad news for consumers if tariff wars don't subside.
According to Yahoo Finance, T-Mobile's CEO Mike Sievert said costs will be borne by customers if the tariffs "fully kick in," increasing costs.
"Tariffs are unpredictable at this point," Sievert told Yahoo Finance on April 24, 2025. "Obviously, we're watching closely. If they come in and they're significant in some way, that's going to have to be borne by the customer. I mean, our model isn't prepared for something like that."
According to Yahoo Finance, he warned of price hikes.
"I think what would happen is prices will rise for smartphones, and then people will slow down their purchases of smartphones, and upgrade rates will slow. Those would be the dynamics that would happen. We don't see that that is on the way," he said to the site.
T-Mobile's CEO isn't alone. The heads of other major companies, including a popular toothpaste and toilet paper brand, have also warned that the tariffs could cause problems for consumers.
As it braces for tariff impact, T-Mobile has been expanding its offerings.
The company "announced two new plans that replace its Go5G Plus and Go5G Next offerings, refreshed its prepaid Metro line and wrapped them all in a promised five-year pricing guarantee," according to Cnet.
Jon Friar, president of T-Mobile's consumer group, explained to Cnet that the new plans are in response to consumer angst over the economy.
"The pain point that's out there over the last couple of years is rising costs all around consumers," Friar said to Cnet. "For us to be able to bring more value and even lower prices on Experience More versus our former Go5G Plus is a huge win for consumers."