Friday, December 13, 2024
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Trump’s reelection may pave the way for tariff relief for Apple

President Trump tours an Apple manufacturing plant in 2019 with Apple CEO Tim Cook. Photographer: Evan Vucci/AP

In his latest Power On newsletter, Bloomberg’s Mark Gurman says that, for all their progressive values, Apple’s top management was probably relieved when former President Donald Trump won reelection this month.

Trump’s policies and rhetoric may clash with Apple’s public positions (on the importance of reducing emissions, for instance), but the company has had an antagonistic relationship with the Biden administration. Gurman thinks the Trump administration may be more friendly to the tech giant, especially in the area of tariffs. He says that Cook has a “clear path” in seeking tariff relief:

  • Cook will be able to tout that a large number of iPhones are now made in India, which is run by Trump ally Narendra Modi. And the CEO can continue to argue that taxing the iPhone will only help non-American rivals.
  • There is a new Mac Pro launching next year. This model was the cornerstone of a Made-in-the-USA pitch for Apple, and for years it’s been assembled in Austin. If it’s possible to produce the new Mac Pro domestically, you can bet Cook will let Trump take credit for making that happen.
  • A new Arizona plant for building chips for lower-end Apple products is in the process of coming online. Though the project happened under President Joe Biden’s watch — with incentives from the Chips and Science Act — Trump will likely see this as a win for his administration when the chips start hitting the market next year.
  • For years, Apple has had on-and-off-again plans to open a major new campus in North Carolina. It slowed down work on the development this year, but said it still plans to open the office. If it makes progress on the effort before Trump’s term ends in 2029, it will give Apple another way to show that it’s committed to the US.
Dennis Sellers
the authorDennis Sellers
Dennis Sellers is the editor/publisher of Apple World Today. He’s been an “Apple journalist” since 1995 (starting with the first big Apple news site, MacCentral). He loves to read, run, play sports, and watch movies.