Apple endured a severe hammering after the Trump tariff announcement caused the Cupertino giant to lose almost $640 billion in market value as it attempted to explore ways to offset its losses, particularly when it came to iPhone shipments. Thankfully, clear minds prevailed, and U.S. President Donald Trump has exempted the levies from the majority of the company’s product range, which would otherwise be subject to 145 percent of additional charges. During an official meeting with El Salvadoran President Nayib Bukele, Trump made it a point that he helped Apple CEO Tim Cook, suggesting that the two had a meeting behind closed doors that ended up being fruitful.
Trump says that he does not ‘want to hurt anybody’ when referring to how he helped out Tim Cook and Apple
Shortly after the tariffs announcement, it did not take long for Apple to start suffering the aftershocks, which would ultimately force it to review all viable options to reduce the levies as much as possible, even if it meant shifting its entire supply chain to another region. Fortunately, the California-based giant does not have to bear that Herculean process because the company gained several exemptions that would allow it to continue pocketing those hefty margins.
As reported by AppleInsider, Donald Trump met with Nayib Bukele and told reporters that he is a very flexible person, and even though he does not change his mind, there are moments when he can exercise a little leeway. The current U.S. President said that he spoke to Tim Cook and helped him out, putting an end to what could have been a grim fate because of the additional levies. TF International Securities analyst Ming-Chi Kuo highlighted that if the company chose to keep prices unchanged, it would suffer between an 8.5 to 9 percent drop in its gross margin.
Morgan Stanley previously stated that because of the way the tariffs were structured, Apple would have a 20 percent chance of obtaining an exemption. With its chances slim, the firm was estimated to lose $33 billion in operating profits. Looking at the recent turn of events, the analysts were incorrect in their assessment, but as the trade wars with China rage on, President Donald Trump could change his mind in the future.
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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