Behind the Money Apple navigates Trump’s tariffs
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Apr 9, 2025 Michael Acton, the Financial Times' San Francisco correspondent, discusses the impact of Trump's tariffs on Apple, which lost over $300bn in market value. He highlights Apple’s vulnerability due to its reliance on international supply chains, especially in China. The conversation delves into Tim Cook’s efforts to navigate these challenges and diversify manufacturing. Acton also addresses the potential regulatory hurdles Apple faces in the transatlantic market and the broader implications for the tech sector amidst rising tariffs and competitive pressures.
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Apple's Tariff Vulnerability
- Apple is highly vulnerable to tariffs due to its complex supply chain based in China and Southeast Asia.
- This reliance makes them susceptible to profit losses, especially with potential tariff hikes.
Cook's Prior Tariff Success
- Tim Cook previously convinced Trump to exempt Apple from tariffs by arguing it would disadvantage them against Samsung.
- He also announced US investments, which appealed to Trump's focus on domestic job creation.
Apple's Current Strategy
- Apple hasn't issued profit warnings yet, suggesting a wait-and-see approach.
- However, Trump's current stance is more aggressive and less predictable than his first term.