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Verizon (VZ) and AT&T (T), two of the largest telecommunications companies in the United States, are preparing to pass the financial impact of upcoming smartphone tariffs onto their customers.

This decision follows the announcement of new tariffs by President Trump, which has prompted both companies to adjust their pricing strategies. Verizon’s CEO, Hans Vestberg, confirmed during a recent earnings call that the company will not shoulder the tariff costs, while AT&T’s CEO, John Stankey, echoed similar sentiments.

The telecom industry is already navigating challenging times, with Verizon reporting a loss of subscribers and AT&T seeing a modest gain. These tariffs are likely to further complicate the landscape for these operators.

Telecom Giants Likely to Pass Increased Costs to Customers
 

The decision by Verizon and AT&T to pass tariff costs onto customers marks a significant shift in how telecom companies are managing external economic pressures. Verizon’s CEO, Hans Vestberg, highlighted during the company’s Q1 2025 earnings call that absorbing these additional costs was not feasible.

Similarly, AT&T’s John Stankey emphasized the need for customers to adapt to higher prices as the company navigates these new financial challenges. This strategic move comes at a time when the telecom sector is already facing hurdles, with Verizon experiencing a loss of 289,000 subscribers in the first quarter of 2025. In contrast, AT&T reported a gain of 324,000 new subscribers, indicating a mixed landscape for these industry giants.

Verizon, AT&T Stocks See Decline
 

The stock prices of Verizon and AT&T have reflected the ongoing challenges and strategic decisions within the telecom industry. As of April 25, 2025, Verizon’s stock opened at $42.53, down from its previous close of $42.81, and further decreased to a current price of $41.5173. The company’s market capitalization stands at $175.04 billion, with a dividend yield of 6.33%. Despite the recent price dip, analysts maintain a “Buy” recommendation, with a target mean price of $48.02.

Meanwhile, AT&T’s stock also saw a decline, opening at $27.46 and dropping to $26.90. The telecom giant holds a market cap of $193.61 billion and a dividend yield of 4.03%. Analysts have set a target mean price of $29.27 for AT&T, reflecting cautious optimism amid the tariff-induced challenges.

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