U.S. President Donald Trump has decided to exclude smartphones from China from the reciprocal tariff list, allowing Apple to avoid the brunt of the trade war for now. The Trump administration stated on the 13th that these products will incur separate tariffs rather than reciprocal tariffs, so we will have to watch the situation unfold, but for now, the market views this as a temporary victory for Apple CEO Tim Cook.
Initially, projections indicated that high U.S. tariffs would lead to the transfer of iPhone assembly from China to the U.S., causing Apple's market capitalization to evaporate to nearly $800 billion. However, after President Trump suddenly excluded smartphones from the tariff list, Apple’s stock price surged by over 4%, successfully rebounding.
Tim Cook did not officially respond even in such a crisis situation. Columnist Tim Higgins noted in a column for the Wall Street Journal (WSJ) on the 13th that what Cook demonstrated was Apple’s distinctive "long-term strategy." He managed to persuade the Trump administration behind the scenes without provoking public opinion and the political arena in the U.S. There are also analyses suggesting that he lobbied President Trump directly while producing iPhones in India for urgent export to the U.S.
In fact, Cook has also made efforts to build a personal relationship with President Trump. In 2019, he played a decisive role in Trump withdrawing tariffs on smartphones, and after Trump’s re-election, he donated $1 million to the inauguration. He has consistently argued that "Apple should not be placed in a disadvantaged position compared to foreign competitors."
Cook also chose to confront the issue head-on when Apple faced a tax avoidance controversy in Europe in 2013. He stated, "We have always fought back. We create the best products steadfastly like the North Star," and he grew Apple into the world's first $3 trillion corporation over the next decade.
When product sales began to slow, he diversified revenues focusing on digital services and apps, developing new businesses like Apple Pay. Even during the pandemic, the iPad, which had struggled, continued to generate steady revenue.
Despite several crises in the global market, Cook opted for the long game. When the European Union imposed $14 billion in taxes on Apple, he appealed for years, significantly reducing the final burden. At that time, Cook's belief that "the longer the lawsuit lasts, the less impact it has" became a reality.
Recently, efforts to diversify the supply chain to reduce dependence on China are accelerating. Production expansion in India and entry into local markets are underway simultaneously. He continues to express optimism, stating, "In the long term, there are much greater opportunities."
However, there are criticisms regarding Apple's case. While tariffs are implemented under the pretext of helping American workers, they actually benefit those with political connections and power. The WSJ pointed out in an editorial titled "Lessons from Trump's Tariff Exemptions" that the core message behind President Trump's decision not to impose tariffs on smartphones was precisely this.