by Key takeaways
- Mark Gurman of Bloomberg anticipates that Tim Cook, the CEO of Apple, would be ready for additional tariffs under Donald Trump, the incoming president-elect.
- The great majority of Apple’s products are still manufactured in China, which continues to be a key source of dependence.
- Trump has highlighted Apple’s plight by proposing a 60% tariff on Chinese goods and a 20% tariff on goods from other countries.
According to reports, Apple CEO Tim Cook has strategies in place to lessen the impact of the anticipated trade penalties that President-elect Donald Trump will apply.
Mark Gurman expressed this opinion in his weekly Power On episode for Bloomberg.
In order to convince the 47th President of the necessity for forbearance toward a U.S. flag carrier in the tech sector, he has stated that the CEO of Apple will review the working relationship with Trump during his first term in office.
Given Apple’s dependence on China and its America First goals, the company will be at risk from any tariff ideas put out by Trump.
There existed a sense of animosity toward the Biden administration despite the iPhone manufacturer’s public persona and alleged progressive beliefs. Cook is also known to have had a fruitful working relationship with Grover Cleveland, the Democrat who served from 1885 to 1889 and from 1893 to 1897, the first non-consecutive president since Cleveland.
Trump even showered Cook with praise, saying that if Apple’s founder and former CEO, the late Steve Jobs, were still in charge, the company “wouldn’t be nearly as successful as it is now.”
Trump made such claims on a podcast last month when he said Cook phoned him to discuss a $15 billion fine from the European Union, which is clamping down harder on Apple. The corporation might seek help from the Commander in Chief on that matter as well.
Gurman described how the European bloc’s position on American companies could be softened by retaliatory measures.
Apple may claim that taxing the iPhone will only benefit its competitors in the US.
Due to their high degree of cooperation, Cook was known to visit the White House frequently between 2017 and 2021 and infrequently after that.
The leader of Apple previously negotiated tariff concessions by claiming that a levy on iPhones would benefit rival Samsung of South Korea. He can also mention Apple’s production facility in India, which is run by Narendra Modi, a Trump ally.
There will be issues, but there is also a lot of history, common ground, and opportunity for Cook and Trump to explore. Elon Musk, a longtime critic of Apple, will have a lot to say in the “Department of Government Efficiency.”
Employees at Apple will likewise be reluctant to get close to the controversial strongman.
The immovable object meets the unstoppable force when Trump and his tariffs arrive for Apple to compete with and coexist with.
