Donald Trump's volatile temperament is now well known, and it doesn't take much for the American president to change his mind completely. Last week, after returning from a trip to the Middle East, the White House tenant pulled out of his hat a 25% tariff that will apply to iPhone imports starting in June. In fact, all smartphones manufactured abroad—China, India, or elsewhere—and sold in the United States will be taxed. But Tim Cook is specifically targeted.
Please do not offend Donald Trump
"I have informed Tim Cook (...) that I expect their iPhones sold in the United States of America to be manufactured and built in the United States, not in India, or elsewhere," Donald Trump wrote. The diatribe was somewhat surprising, as the Apple boss is close to the president: Tim Cook had proven himself very adept at defending his company's positions during Trump's first term. And things hadn't been going so badly since the start of the second.
It was indeed Tim Cook who wrested from Donald Trump the exemption from customs duties on smartphones and computers produced in China and elsewhere. But the leader made a fatal error: refusing a presidential trip. The CEO declined the invitation to travel to the Middle East last week, unlike many of his colleagues.
Sam Altman (OpenAI), Lisa Su (AMD), and Jensen Huang (Nvidia) were also on the trip. The New York Times reports Donald Trump's cold anger, who in his public speeches noted Tim Cook's absence. And that's what prompted him to announce these tariffs...
It remains to be seen whether these tariffs will actually be implemented. Donald Trump could change his mind on a whim, or Tim Cook could be persuasive enough. But if it were to remain in place, this 25% tax risks weighing heavily on consumers: it's hard to see how Apple could avoid passing the bill on to them.
Source: New York Times
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