President Trump talked to Apple CEO Tim Cook after China tariff reduction
The phone calls between the President and the country's most lucrative tech company's CEO have become regular, though it isn't clear what they accomplish beyond keeping Apple on the nice list.
iPhone prices may be safe from going up, for now
The economically catastrophic and seemingly random tariff wars reached a new milestone on Monday as the Trump administration announced a new tariff deal with China. While Apple was exempt from much of the tariffs for now, it was still set to take a $900 million hit in the June quarter -- which now may have been lessened.
According to a report from CNBC, President Trump said he spoke with Apple CEO Tim Cook on the phone after announcing the changes to the tariffs in China. He didn't share details of the conversation, only that Cook will "even up his numbers."
There's no real way to interpret what that phrase might actually mean.
It could be referring to Apple not having to lose $900 million during the June quarter. However, that number won't be zero. The tariffs are still set to 10% to 30% based on which goods are being discussed -- still notably higher than before Trump took office.
The phrase could indicate that Apple's $500 billion investment in American manufacturing infrastructure could be recouped. However, whether or not Apple's investment is returned is moot because that money won't see returns for more than a decade.
There's a chance that he's referring to the price of the iPhone, which Apple is still toying with the idea of raising to account for tariffs. While Apple would still be taking a loss at 10%, it isn't as great a loss as at 145%, so it could eat that difference instead of passing it to customers.
Regardless, Apple won't be able to "even up numbers" for long, as a semiconductor tariff is still being worked on by the administration. That, and the chaotic back and forth on every economic policy, makes it impossible to predict the next three months, let alone the next three days.
Whatever the case, Apple has enough cash on hand to endure for many years, regardless of the whims of the US presidency. Cook's phone calls continue to be a part of his strategic playbook, which plays to Trump's ego in desiring phone calls and dinners with powerful people seemingly as a trade of good faith.
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Comments
America is being sacrificed on the alter of Reaganomics.
I completely disagree. I realize it's more than fashionable here to trash Trump, the tariffs, etc. But the reality is that our trade policy has been a nightmare for decades, particularly with China. We had been operating in the 20th-century paradigm, both for China and the rest of world. For the former, the theory of the case was "free" trade (which was nothing of then kind) would enable economic growth in both countries, but that China would liberalize as its prosperity grew. In fact, China went exactly the opposite way. China has become more closed, more authoritarian, more corrupt and more aggressive. For the latter, our policies were stuck in the post-war mentality, when Europe was devastated and we were helping them recover.
What Trump is doing is resetting these relationships. His plan should now be obvious to anyone who doesn't have--pardon me---"derangement syndrome." That goal was to triangulate China into changing the way it does business...from tariffs, to non-tariff barriers, to theft of IP, etc. Secondarily, the goal was to improve terms with our other trading partners or "allies." As a supporter of the president, I have to admit that I didn't really understand the strategy of going after allies as well as foes (or frien-a-mies.). After all, why not just target China and go the opposite way with allies? Why not treat them in a more conciliatory way, but go hard on China?
However, as deals with India, the UK, Vietnam and others took shape, it dawned on me. Trump hit everyone hard (but China harder) and then proceeded to quickly work on deals with those friendlier nations. He was able to largely correct (or is in process of correcting) the trade problems we've had with our allies, and leave China--pardon me again---standing with its junk in its hand. It explains why they are now negotiating and willing to stand down. Their economy is getting hammered, millions are unemployed, factories are closing....and Trump is running around making trade deals with everyone but them.
I'll admit it's been somewhat chaotic. Wall Street hates tariffs. But we're already seeing the results. Debt growth has slowed dramatically. Inflation is nearing the 2% target. Prices of staples (such as eggs) continue to fall. Ditto on energy prices. Private payrolls are showing solid growth. Even last quarter's GDP reduction (-.3%) was misleading, as companies like Apple rushed to import goods before tariffs kicked in (this reduces GDP in the calculation).
You've railed against debt, tax cuts, Reagannomics, etc. Briefly:
Debt: We agree on the scope of the problem. I would think you'd support things like DOGE, energy development, tax cuts for economic stimulation, etc. I'd certainly think you'd realize both parties have historically been a nightmare on this issue, but that the Democrat party is currently far, far worse (just take 2021-24 alone).
Tax cuts: I don't know where this notion of "squeezing the working class" and "tax cuts for the rich" comes from, other than the Democrat party propagandists and their media allies. The Trump tax cuts benefited the lower and working classes more than the wealthy. That is simply a fact. Another fact is that Trump and the GOP are considering actually raising taxes on the wealthy in the planned extension (reconciliation) package.
Reagannomics: I'm not sure I see the connection. I also have my doubts that you have a full understanding of what "Reaganomics" even was/is. You've no doubt been told (as nearly everyone has) that it was cutting taxes on the wealthy, slashing welfare and healthcare, and giving "tax breaks" to evil corporations and the mega rich. Sound familiar? I wonder why?
How do you reconcile that with your claims that Trump has a strategy in mind? He's already proven that deals he made previously and personally endorsed are meaningless.
If you don’t know where the tax cuts for for the wealthy are, what can I say, you haven’t been paying attention. He did it last time and will try it again. The middle class continues to get squeezed as our costs for things like healthcare go up and up with no relief in sight. GOP cuts so-called “entitlements”. GOP votes against things insulin caps and other regulation designed to help the working class despite the loss of additional profit to wealthy corporations. Entirely departments of services are being cut by Musk, claiming they’ll be pushed down to the states, and yet our federal income tax remains the same, while we get less for it. States will be forced to cut services or charge more income tax. This is very standard and well understood stuff. The wealthy top percentage have added billions more to their hoarded wealth while minimum wage and general wages have remained stagnant. Your ignorance is bliss, I guess.
prices are going up, scarcity is increasing, ports are emptying, truck drivers are stuck with no work, layoffs are increasing, and our economy dropped for the first time since Covid under these policies. Inflation is down because the economy is grinding to a halt (this happens when people don't spend money and isn't a good thing). Egg prices dropping have nothing to do with Trump, it's a result of farmers vaccinating and isolating chickens, it's also a result of people stopping buying eggs for nearly a month while prices reached a peak, which stabilized supply.
China isn't scrambling. Idk where that comes from. And there's no negotiations, especially not with China. A deal was made, sure, but one that resulted in us undoing our outrageous tariffs and China reciprocating. That's not exactly "art of the deal" material.
Don't believe the lies. America is in trouble, but because of problems it is creating. We're now in a hole that will take decades to repair. If all it takes is one authoritarian president to take office and upend the global economy, no one is going to trust us again until we put laws in place to ensure this doesn't happen again.
It isn't against the rules to be wrong. Note the posts that stay up with wrong information.
If people want to change their mind, they will, but not at your demand.
You are correct. It's more than fashionable, it's factually accurate. There is so much BS that follows in your post. Trump had shown time and time again, starting with his first term that he truly doesn't understand tariffs and especially trade deficits. He believes what he believes and doesn't respond well if at all to any education his handlers may give him. I'm not sure he gets much but he thinks he always knows better. He proves is ignorance in any discourse being his Truth echo chamber, a rally, or TV interview.
He gets so many things wrong daily it's no surprise he can't grok tariffs or trade deficits. Everything he touches turn to a nightmare for the middle and lower "classes" and benefits only his malicious nature and members of the Republican Party. His actions will cost taxpayers more than he's been claiming he's saving.
He obviously didn't learn anything from his soybean fiasco in is first term.
There will be a detrimental inertia that will take this and any increased pain the Right doles out far beyond three years, far beyond tariffs. If a Big Mac heart attack took him out today we wouldn't be any better three years from now unless maybe the Dems do much better in '28 than they did in '24.
I know America will be around three years from now. I can't say the same for a significant percentage of the current population.
I definitely can't say the same for Democracy.
Hope nobody wastes substantial time responding to this ChatGPT aided drivel.
You should let Trump and his circle know about their "strategy", cause they sure don't seem to have a fucking clue. They just backed down on their China tariffs. Trump blinked, China didn't, and nothing about that tarrif relationship was "reset". It also proved that all his tariff justifications (building factories in the US, needing it to pay off the debt, etc) were just lies. China escalated and held firm, because they knew they could hold out while the US would back down in short order, which they did. The China situation undermines every single word of your post, but I guess that's irrelevant to you.
Tim Cook's primary responsibility is to maximize shareholder's wealth and he should have realized in any way abetting Trump to regain power would endanger shareholder wealth.
As far as Reaganomics, Reagan has nothing to do with Trump. Trump is the anti-Reagan.
Plus, I shouldn't need to continuously remind our forum members not to insult each other or the president. You can comment on policy without calling someone stupid. If you see a post violating the rules, please flag them, we don't always see them all.