Summary: US President Donald Trump has hinted at a light at the end of the tunnel for companies hardest hit by the latest 125% tariff on imports from China, such as Apple, suggesting that exempting them is possible. However, the parameter to consider will be his “instincts.”
The ongoing “tariff war,” in which the strongest participants are the United States and China, has escalated significantly. Recently, US President Donald Trump announced a massive 125% tariff on imports from China, effective immediately. Apple, the US technology giant, would be one of the companies most affected by the tariff. However, it is still possible that Apple—and others—will be exempt from the tariffs, although everything will depend on Trump’s “instinct.”
President Trump will use his “instincts” to evaluate potential tariff exceptions for companies like Apple
Donald Trump answered a few questions from journalists. One asked him if some US firms that were “hard hit” by the recent tariffs imposed by the Washington administration could be exempted. The journalist also included “large companies” in his question. To this, Trump responded that his team will “take a look at it.”
The President of the United States acknowledges that certain companies will experience a more severe impact than others. Therefore, they will have to consider some special cases for potential extensions.
Another reporter later inquired about the process for determining which companies should receive exemptions from the tariffs. “Just instinctively, more than anything else,” Trump responded.
Trump was also asked about his change of heart regarding the implementation of the tariffs. The president had said that they would go into effect on Monday and that there would be no pause. However, he later announced a 90-day pause for some countries, adding that more than 75 nations had contacted him to negotiate. “You have to have flexibility,” he said. “I could say, ‘Here is a wall, and I am going through that wall. I am going to go through it, no matter what, and keep going,’ and you can’t go through the wall. So, sometimes you have to be able to go under the wall, around the wall, or under the wall.”
It sounds like the president is evaluating the regions’ response to the tariffs. Then, he addresses the most difficult cases individually with other strategies.
There is still much to know
Regarding Apple, we will have to see how long it can withstand the tariff pressure. In the worst-case scenario, the Cupertino giant won’t get any tariff exemptions. However, given how important it is to the US, that’s unlikely to happen. It also remains to be seen whether the potential tariff exemptions will be total or partial.
Like most big tech brands, Apple manufactures its devices in China. A 125% tariff could force them to double—or even triple—the prices of their products. Only time will tell how the company and US authorities handle the situation.
