Apple was on brink of a major crisis before tariff concession from Trump

For the time being, at least, Apple Inc. has avoided its most significant problem since the epidemic. Trump's 125% tariffs on Chinese-made goods posed the same threat to the country's supply chain that the Covid snarls did five years ago. The US president gave Apple a significant win on Friday night, excluding a number of well-known consumer devices. This covers Apple Watches, Macs, iPhones, iPads, and AirTags. Another victory is the removal of the 10% duty on goods imported from other nations.

The move is a triumph for Apple and the consumer electronics sector, which still largely depends on the Asian country for manufacturing, even if a new, lower so-called sectoral tax may still be applied to products that contain semiconductors and a 20% duty on China is still in place. In a note on Saturday, Evercore ISI analyst Amit Daryanani stated, "This is a huge relief for Apple." "Inflation in material costs would have been caused by the tariffs."

He anticipates a Monday rally in the shares after they have lost 11% this month. The iPhone manufacturer had a strategy prior to the most recent exemption: reorganize its supply chain to produce more iPhones headed for the US in India, where tariffs would have been far lower. Apple officials thought there would be a short-term way to escape the enticing China tariff and prevent significant price increases.