Did Tim Cook Outmaneuver the Tariffs? Unveiling Apple's Strategy

When President Donald Trump announced a set of tariffs on countries the U.S. trades with on April 2, stocks for tech companies like Apple, Dell, and HP were rocked, wiping out billions in market value.

The Trump administration seemingly reversed course on the plan, instituting a 90-day pause on tariffs for most countries . Then there was more of a reprieve for tech companies when consumer tech products, such as smartphones and computers, were exempt from tariffs . While Trump insists that these exemptions are only temporary, it appears that this pivot might have been the work of Apple CEO Tim Cook.

A report from the Washington Post references sources that mention a conversation between Cook and Commerce Secretary Howard Lutnick occurring prior to the announcement of the exemptions. This discussion allegedly revolved around the potential effects of tariffs on iPhone pricing.

Trump took to Truth Social the Sunday after the exemption list went up saying, "NOBODY is getting 'off the hook'. There was no Tariff 'exception' announced on Friday."

He then told the White House Press Corps on Monday that he does speak with Cook.

“Look, I’m a very flexible person, I don’t change my mind, but I’m flexible,” Trump told reporters on Monday, according to Bloomberg I assisted Tim Cook not long ago with that entire situation.

Congratulations to President @DonaldTrump and Vice President @JDVance on Inauguration Day! We're excited about collaborating with your administration to foster ongoing innovation and job creation for future prosperity throughout our wonderful country. January 20, 2025

For how much longer will Apple be protected from tariffs?

Given that some of Apple's top-selling items appear to be excluded, this isn’t hindering their approach to move forward despite the cessation of the halt.

Apple already has its iPhone 16e as reported from Brazil, according to a statement MacMagazine, first spotted by 9to5Mac The affordable iPhone model has been assembled domestically right from the beginning, contrasting with the usual practice where the company initially produces newer models exclusively in China or India for several months before commencing local production. This shift might indicate Apple’s strategy to gradually relocate smartphone manufacturing to different nations such as Brazil, which imposes a 10% duty. At present, the U.S. faces this situation. 245% tariff on some Chinese imports.

Should Apple fail to find a way to address the reinstatement of tariffs, the upcoming iPhone might experience a significant increase in price.

With Trump’s tariffs in place, the cost of a new iPhone might experience a substantial increase. The highest-end model of the iPhone—the 16 Pro Max equipped with 1TB of storage—could potentially become much more pricey. over $2,000 because of tariffs And if the iPhone were made in the U.S., as President Trump claims—the rationale behind the tariffs being imposed is to encourage manufacturing back into the country—the price of an American-made iPhone might soar significantly higher. more than $3,000 .

Despite tariffs remaining suspended for Apple products, the price of the upcoming iPhone might still increase because of higher costs associated with the device’s components. TSMC, which manufactures Apple’s chips, recently conducted an earnings briefing. For Q1 2025, they reported strong performance with a net profit of $361.56 billion; however, they noted “there are uncertainties and risks stemming from possible effects of tariff policies.” They plan to keep a close watch on how this may influence overall market demands and intend to handle their operations cautiously as a result.

Features: With 128GB of storage, this device utilizes 5G connectivity and features a USB-C to USB-C charging cable, available exclusively in black. Its battery lasts approximately six hours more compared to an iPhone 11 and twelve additional hours over an iPhone SE. Graphics performance is handled by a quad-core GPU under the hood of an Apple A18 chip. This model showcases a display capable of reaching peak brightness levels at 1,200 nits across its 6.1-inch panel enhanced with a ceramic shield front cover. Photography capabilities include a lens offering a 10x optical zoom along with support for high dynamic range imaging. Device security relies on facial recognition via Face ID, and it maintains resistance against water ingress up to depths of around 19.6 feet. Warranty coverage extends through a standard one year period upon purchase. View Deal

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