WASHINGTON: Following the recent US-China trade agreement in Geneva, which suspends most tariffs for 90 days, former U.S. President Donald Trump said he spoke with Apple CEO Tim Cook about the potential implications for Apple’s operations and investments in the U.S.
“I spoke to Tim Cook this morning, and I think he’s going to even up his numbers,” Trump told reporters from the Oval Office. “He’s going to be building a lot of plants in the United States for Apple. And we look forward to that. It’s a $500 billion plan.”
Cook has previously lobbied successfully during Trump’s first term to exempt several Apple products from tariffs. Trump’s comments suggest Apple may now expand its domestic investment plans, although no new commitments have been officially confirmed by the company.
Markets React Positively
The announcement of the tariff pause triggered a strong response from Wall Street. Apple shares rose 6% on Monday, outpacing the Nasdaq’s 3% gain, as investors welcomed the easing of trade tensions between the world’s two largest economies. The broader market also rallied in response to the cooling rhetoric between Washington and Beijing.
iPhone Price Hike Rumors Resurface
Earlier in the day, a Wall Street Journal report suggested Apple is considering raising prices for its upcoming iPhone lineup, expected in September. Citing unnamed sources, the report said Apple is weighing whether to tie potential price hikes to new features and designs—rather than associate them with tariff-related costs.
While Trump didn’t comment on the report or the possibility of iPhone price increases, he reiterated Apple’s long-term commitment to U.S. investment. “He [Cook] is going to be building a lot of plants in the U.S.,” Trump repeated.
Apple has maintained the $999 starting price for its flagship iPhones since launching the iPhone X in 2017. However, with rising production costs and global tensions, analysts have speculated the company may soon adjust pricing. Earlier this year, Apple replaced its budget iPhone SE with the iPhone 16e, priced higher—indicating a possible shift in its pricing strategy.
Tariffs Cost Apple $900 Million in Q1 2025
During a recent earnings call, Tim Cook revealed that Apple expects to incur $900 million in tariff-related costs in the first quarter of 2025. When asked about whether these costs would lead to price increases, Cook declined to provide specifics, saying only: “We have nothing to announce today.”
Production Strategy: Shifting Beyond China
Despite the continued production of high-end iPhones like the Pro and Pro Max models in China, Apple is accelerating its efforts to diversify its supply chain. According to Bloomberg, Apple aims to import the majority of iPhones sold in the U.S. from India by the end of 2026, as part of a broader strategy to reduce its dependence on Chinese manufacturing amid ongoing geopolitical uncertainties.
