The exemption from tariffs imposed by President Trump on certain technological products brought temporary relief for Apple, but a sense of uncertainty still lingers.

Amid the reciprocal customs duty tariff measures implemented by the Trump administration in the United States, exemptions from additional customs duties on certain technology products such as smartphones, computers, and chips provided relief, albeit briefly, especially for some companies. One of these companies was Apple. According to Bloomberg, before Trump’s exemption decision, Apple was already on the brink of a crisis. The exemption decision ensured that the company, facing its largest crisis since the pandemic, was temporarily averted. This was primarily due to the company’s reliance on China for production. Trump’s announced 125% tariff on products manufactured in China could have disrupted Apple’s supply chain. “A SIGNIFICANT RELIEF FOR APPLE” According to Bloomberg’s assessment, despite the presence of new and lower industry tariffs on products containing semiconductors, and the continuation of a 20% tariff on China, the recent change made by the Trump administration was a victory for the consumer electronics sector, largely dependent on China for production, including Apple. Evercore ISI analyst Amit Daryanani noted in a memo shared on Saturday, “This is a significant relief for Apple… Tariffs could have pushed material cost inflation up.” APPLE’S PLAN B WAS INDIA Prior to the latest exemption provided, Apple had a plan in response to tariffs. The plan entailed increasing iPhone production in India for sale in the U.S. to face lower tax rates. The existing facilities in India have the capacity to produce over 30 million iPhones annually. Apple sells between 220,000 to 230 million iPhones each year, with approximately one-third of these sales destined for the U.S. On the other hand, the company plans to manufacture the new iPhone 17 largely in China. This led to fears within Apple’s operations, finance, and marketing departments about the launch of new phone models. Failure to secure Trump’s latest tariff exemption would have necessitated Apple to move the production of iPhone 17 to a larger extent to India or another country. Although still possible, this could have led to price increases for the products. WILL CHINA RETALIATE? Despite the relief felt, a sense of uncertainty persists. Given that the White House’s policies may change again, it is thought that Apple may also need to make more dramatic changes. Moreover, concerns are raised about rapid relocation of Apple’s production from China to another country triggering retaliation from Beijing. Approximately 17% of Apple’s revenue is derived from this country, and the company has dozens of stores in China. Considering China has initiated competitive examinations with other U.S.-based companies, this could pose a problem for Apple as well.