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 cites sources who spoke of a call between Cook and Commerce Secretary Howard Lutnick that happened before the exemptions were made public. The talk between Cook and Lutnick was reportedly about how tariffs can impact the prices of iPhones.
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 helped Tim Cook recently and that whole business."
Congratulations to President @realDonaldTrump and Vice President @JDVance on Inauguration Day. We look forward to working with the administration to drive continued innovation and jobs for future growth across our great nation.January 20, 2025
How long will Apple be saved from tariffs?
With some of Apple’s most popular products seemingly exempted, it's not slowing down its strategy to deal with the end of the pause.
Apple already has its iPhone 16e being made in Brazil, according to a report from MacMagazine, first spotted by 9to5Mac. The budget iPhone has been manufactured in the country since day one, which differs from the company's regular process of waiting for some time before a new phone is produced locally in a country with the early batches made in China or India. This could be the start of Apple's plan to move phone manufacturing to other countries like Brazil, which has a 10% tariff. The U.S. currently has a 245% tariff on some Chinese imports.
If Apple doesn't come up with a solution to deal with the return of tariffs, the next iPhone could see a big price jump.
Under Trump's tariffs, a new iPhone could see a significant jump in price. The most expensive variant of the iPhone, the 16 Pro Max with 1TB of memory, could end up costing more than $2,000 due to tariffs. And if the iPhone were manufactured in the U.S., as Trump declares—the reason for the tariffs is to bring manufacturing back to the U.S.—the cost of a domestically produced iPhone could jump to more than $3,000.
Even if tariffs stay paused for Apple, the cost of the next iPhone could still jump due to the cost of the device's internal parts. Apple silicon manufacturer, the Taiwan Semiconductor Manufacturing Company (TSMC), held its earnings call earlier in the week. The company performed well for the first quarter of 2025 with a net income of $361.56 billion, but said there are "uncertainties and risks from the potential impact from tariff policies exist. We will continue to closely monitor the potential impact on the end market demand, and manage our business prudently."
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