Apple was on brink of crisis before tariff concession from Trump

Key Points

  • Apple Inc. has dodged a major crisis with the US president exempting many popular consumer electronics from tariffs on goods produced in China.
  • The exemption includes iPhones, iPads, Macs, Apple Watches, and AirTags, providing relief from potential cost inflation.
  • Apple had plans to shift more iPhone production to India to mitigate the impact of tariffs, but the recent exemption has alleviated immediate concerns.

Summary

Apple Inc. has managed to navigate a significant challenge posed by potential tariffs on goods from China, thanks to a recent exemption by the US president. This exemption covers key Apple products like iPhones, iPads, Macs, Apple Watches, and AirTags, which would have otherwise faced a 125% tariff, potentially leading to substantial cost increases. The relief comes at a critical time as Apple was preparing to shift more of its iPhone production to India to avoid these tariffs. Analyst Amit Daryanani from Evercore ISI noted that this exemption is a major relief for Apple, predicting a positive impact on its stock price following a recent decline. Despite this reprieve, uncertainties remain due to potential policy shifts and the complex relationship with China, where Apple generates significant revenue and has substantial manufacturing operations. The company's reliance on China for production, especially for iPhones, iPads, and Macs, underscores the strategic importance of maintaining a balance in its global supply chain amidst ongoing trade tensions.

yahoo
April 13, 2025
Stocks
Read article

Related news