Apple and Other Companies Could Get Special Exemption from US Tariffs
Massive tariffs on Chinese imports have been imposed by President Donald Trump; they were first set at 125% and then temporarily lowered to 10% for 90 days. Businesses that depend on Chinese manufacturing are directly impacted by this decision, and industry watchers say Apple is one of the most affected. Given that the majority of its products are made in China, Apple may nowhave to deal with much higher production costs.
Possible Exclusions
A reporter asked about exclusions from these new taxes during a recent Liberation Day event. In his evasive response, Trump alluded to the possibility that businesses considered to be “harder hit” by the legislation may be spared. Given its close manufacturing ties to China, many people theorize that Apple would be eligible for such an exemption. But President Trump also acknowledged that he will rely heavily on “instinct” when making choices about exemptions.
Costs of Mounting Production
According to a Wall Street Journal story, economists predict that the new tariff plan might result in a $300 rise in the production cost of an iPhone 16 Pro. Even while the 10% rate might provide some relief, there is still a lot of ambiguity regarding what will happen once the 90-day period ends and whether the tariffs would return to the greater amount that was initially intended.
Apple’s Safety Measures
To lessen the immediate effects of these levies, Apple has started hoarding inventories since it is unwilling to take any chances. The business is also reportedly increasing its manufacturing presence in Brazil, where tariffs are significantly lower than in the United States. Apple may be able to protect itself from the unstable trade environment by diversifying its production locations.
