Trump’s new US tariff rules have created much chaos within countries, economies, the stock market, and others. While the entire world is going upside down, Trump’s decision to temporarily exempt smartphones, laptops, and chips from tariffs came as a big relief to the tech industry. Now, the US president has come forward, revealing that this new decision was taken into account to “help” Apple CEO Tim Cook. This resulted in a 2% growth in Apple shares, with a market cap of more than $3 trillion. Therefore, know why Apple will be in big trouble if tariffs come into place for all electronics products and how Trump has provided a temporary relief to the company.
Also read: Apple was on brink of crisis before Trump tariff concession
Donald Trump speaks to Tim Cook regarding US tariff rules
The US President, Donald Trump, on Monday became a part of press coverage with the El Salvadoran President Nayib Bukele, discussing recent US tariffs rules. During the Q&A, the president briefly talked about how he had a conversation with the Apple CEO regarding the tariff rules and how the exemption of certain electronics took place in the first place.
Well, Apple is heavily dependent on China for manufacturing iPhones and other parts of its products. Therefore, the company exports a lot of material from the country. With huge tariff rates applied on China, this could drive the company in big trouble when it comes to managing product prices to consumers as well as other manufacturing and exporting costs.
Also read: How an Apple Watch helped a woman detect life-threatening cancer before it was too late
With the growing concern, Trump said during the press coverage, “I speak to Tim Cook. I helped Tim Cook, recently, and that whole business,” it was further added that “I’m not, I don’t want to hurt anybody, but the end result is we’re going to the position of greatness for our country.” Highlighting Apple to shift its manufacturing to the US.
While the move may not be entirely in favour of Apple, but it can be assumed that the US president can turn to business leaders like Cook to gain understanding about economic matters. Yet, the US government has done a huge favor to Apple, and the inputs from Tim Cook have brought a “flexible” approach to set the right tariff rules in the country. But again, it should be noted that these are just temporary changes, and we are unsure of how the tariffs will be applied in the upcoming months and how they will affect tech businesses.
Also read: Apple to add cameras in future Apple watches with AI features and advanced capabilities: Report
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