Canadians are used to seeing higher prices than what our neighbours in the U.S., but the price gap for the latest iPhone has caused some double takes.

The iPhone Duo, Apple’s new foldable phone revealed Wednesday, is retailing for prices ranging from $2,999 to $4,799 in Canada, before tax.

In the U.S., prices start at $1,999 US, which works out as $2,760 — meaning Canadians will have to pay almost 10 per cent more for the cheapest version.

The sticker shock drew jeers and jokes on a Canadian Reddit forum, with one user saying anyone who spends that much on a phone should have to take a financial literacy class.

“You used to be able to buy a car for that amount,” another wrote.

University of Toronto economics professor Joseph Steinberg says the price bump likely signals that Apple recognized the subset of the Canadian population that would buy a “super-premium product” like the Duo is “less price sensitive” relative to American consumers, “and therefore they can get away with jacking up the margin a little bit more.”

He notes that it’s not unusual for electronics and other products to be more expensive in Canada.

“This one just stands out because of how darn expensive this phone is, I think, more than anything,” Steinberg said.

It’s not tariffs: profs

Some have speculated that Canada’s new retaliatory tariffs on U.S. products would raise iPhone prices, but experts told CBC News that is not a factor in this case.

While the list of U.S. products tariffed at 50 per cent includes smartphones, Steinberg says Canada does not actually import the devices from the U.S. in any meaningful quantity.

Additionally, Canada’s tariffs do not apply to the iPhone Duo because the phones are built in China and are therefore treated as a product originating in China and not the U.S., he says.

WATCH | Some Canadians already feeling the pinch from tariffs:

Canadian consumers already seeing trade war price hikes

Canadian consumers are already feeling price hits from Canada’s counter-tariffs on U.S. goods, and more pain could be coming soon as U.S. President Donald Trump escalates the trade war even further against Canadian companies and products.

“What matters for whether a tariff is applied is where the project originates from, not where it last crossed the border into Canada from,” he added.

Canada’s counter-tariffs on U.S. products came into effect early Tuesday, prompting Washington to escalate the countries’ trade dispute by banning certain goods imported from Canada and introducing more tariffs of its own later that day.

Microchip shortage raising prices

Werner Antweiler, chair in international trade policy at the University of British Columbia, says virtually all electronics Canadians buy come from Asia, and include components made around the world.

He says the reason smartphone prices are rising in general is because of the global microchip shortage caused by the AI boom and the rapid spread of data centres, creating a “crazy demand” that is driving up manufacturing prices.

Antweiler says he’s surprised to see Apple specifically raise its prices more for Canadian consumers, though he notes it’s not an uncommon practice for U.S. companies.

“Price discrimination is not unusual, and that can be in the magnitude of 10 to 15 per cent, because that is typically what the Canadian market will pay more,” he said, adding that’s largely because Canada is a smaller market than the U.S.

CBC News has contacted Apple for comment but has not heard back.

Apple CEO John Ternus led the unveiling of the iPhone Duo on Wednesday, which marked a major change to the company’s flagship product in his first event since taking the leadership role.

Pre-orders for the Duo begin on Oct. 17 and the phone will be available Oct. 23.