After a volatile week for Apple’s stock punctuated by a respite Wednesday following the announcement that President Trump was pausing tariffs on dozens of countries, there’s some potential good news for the iPhone maker. While punishing tariffs of 125 percent remain on imports from China, Apple could receive a much-needed exemption based on a vague but promising comment from President Trump in a press conference Wednesday.
Apple has been hit harder than most by the situation because its supply chain is so dependent on Chinese manufacturing. We’ve written extensively about how Apple can handle the tariffs without raising prices too much, but the company’s options are less than ideal due to its size and scale. However, the ever-changing situation may ultimately work out in Apple’s favor after the president has indicated that extreme cases may be given special treatment.
As spotted by AppleInsider, Trump responded to a question about tariff exemptions, which he had previously denied would happen, by hinting at a less hardline and more vibes-based approach.
“Would you consider exempting some US companies,” asked a journalist, “maybe some larger companies who have been hit hard in the markets the last few days, during [the 90-day pause]?”
“As time goes by, we’re going to take a look at it,” Trump replied. “There are some that have been hard… There are some that by the nature of the company get hit a little bit harder, and we’ll take a look at that.”
“How will you determine [inaudible]?”
“Just… instinctively, more than anything else. I mean, you almost can’t take a pencil to paper. It’s really more of an instinct I think, than anything else.”
Apple has made efforts to conciliate the president since his second electoral victory, including a million-dollar personal donation by Tim Cook to the inauguration fund, so Apple should be in a good position to win concessions. Perhaps those million dollars were well spent after all.