U.S. President Donald Trump said he spoke to Apple CEO Tim Cook shortly after the U.S. and China agreed to scale back tariffs, signaling a potential turning point in the prolonged trade war. As per news reports, the development is seen as a major relief for Apple, which has been navigating higher costs, production shifts, and supply chain disruptions.
Trump announced on Monday, May 12, 2025, that Cook has plans to increase Apple’s investments in the United States, without going into specifics. This follows months of mounting pressure from Washington for Apple to move manufacturing out of China.
The truce between the world’s two largest economies comes after a series of escalating tariffs, with U.S. duties on Chinese imports rising as high as 145%. Apple, which manufactures a significant portion of its products in China, was hit hard by these policies. The recent agreement to scale back import duties provides temporary relief and was welcomed by the markets. Apple’s stock surged by 7% in premarket trading, with Nvidia also jumping nearly 5%.
Amid rising U.S. tariffs, Apple has been shifting iPhone production to India. Tim Cook confirmed earlier this month that most iPhones sold in the U.S. will now originate from Indian factories. This move was driven by an expected $900 million cost increase for the April–June quarter, largely attributed to tariff-related expenses. India’s growing role in Apple’s global supply chain marks a significant pivot in the company’s strategy.
Also Read:Apple’s 116% Export Surge: India Takes Centre Stage in iPhone Supply Chain.
Despite the tariff rollback, Apple is reportedly considering raising prices for its upcoming iPhone lineup. According to The Wall Street Journal, the company may bundle the hikes with new features and an ultrathin design to justify the increase. The base model of the iPhone 16, currently priced at $799, could reach $1,142 if tariffs and manufacturing shifts drive up production costs, as projected by Rosenblatt Securities.
Apple has not officially commented on the price hike speculation, but analysts have warned that steep increases could erode market share, particularly as competitors like Samsung gain ground with AI-powered features.
With U.S.-China tensions easing and Apple reevaluating its manufacturing strategy, all eyes are on how the tech giant adapts in a volatile global environment. Trump’s remarks hint at a deeper shift toward domestic production—one that could reshape Apple’s operations and impact its pricing, supply chain, and long-term competitiveness.
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Published on: May 13, 2025, 1:46 PM IST
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