Apple recently faced major market problems after Trump announced new tariffs, causing the company to lose about $640 billion in value. The tech giant searched for ways to reduce losses, especially regarding iPhone shipments. President Donald Trump later exempted most Apple products from tariffs that would have added 145 percent in extra charges. During a meeting with El Salvador President Nayib Bukele, Trump mentioned helping Apple CEO Tim Cook, hinting they had met privately with positive results.
Trump told reporters he doesn't "want to hurt anybody" when describing how he assisted Cook. The tariff announcement initially sent Apple into crisis mode as it considered all options to minimize financial damage, including possibly moving its entire supply chain elsewhere. But these drastic measures became unnecessary after the exemptions came through, allowing Apple to maintain its profit margins.
Financial analyst Ming-Chi Kuo had calculated that keeping prices unchanged would have cut Apple's gross margin between 8.5 and 9 percent. Morgan Stanley analysts previously estimated Apple had only a 20 percent chance of receiving an exemption and stood to lose $33 billion in operating profits. Their prediction proved wrong, but as trade tensions with China continue, Trump might change his position in the future.
Trump told reporters he doesn't "want to hurt anybody" when describing how he assisted Cook. The tariff announcement initially sent Apple into crisis mode as it considered all options to minimize financial damage, including possibly moving its entire supply chain elsewhere. But these drastic measures became unnecessary after the exemptions came through, allowing Apple to maintain its profit margins.
Financial analyst Ming-Chi Kuo had calculated that keeping prices unchanged would have cut Apple's gross margin between 8.5 and 9 percent. Morgan Stanley analysts previously estimated Apple had only a 20 percent chance of receiving an exemption and stood to lose $33 billion in operating profits. Their prediction proved wrong, but as trade tensions with China continue, Trump might change his position in the future.
