Apple May Get Exemption from Trump's Tariffs as Companies Brace for Economic Impact

With former President Donald Trump’s recently announced 125% tariffs on Chinese goods shaking up the global tech and manufacturing landscape, Apple is among the hardest-hit companies — and possibly one of the first in line for tariff exemptions.

Apple Faces a $300 Cost Surge Per iPhone

Most Apple products, including the upcoming iPhone 16 Pro, are assembled in China. According to The Wall Street Journal, Trump’s steep new tariffs could increase production costs for the iPhone 16 Pro by as much as $300 per unit. Although the White House later lowered the tariff rate to 10% for a temporary 90-day period, the long-term impact remains uncertain.

During a recent event dubbed “Liberation Day,” Trump was asked whether any exemptions would be offered. His answer was characteristically vague, suggesting that companies “hit harder” might receive special consideration, with exemptions based on “instinct” rather than strict policy.

Given Apple’s reliance on Chinese supply chains and its impact on the U.S. economy, analysts believe it is likely to receive an exemption or at least preferential treatment under the new policy.

Apple Stockpiling Inventory, Looks to Brazil

Anticipating supply chain disruptions, Apple has reportedly started stockpiling inventory to cushion against the initial wave of tariff-driven price hikes. The company is also exploring expansion in other manufacturing hubs, particularly Brazil, where import tariffs remain significantly lower compared to China.

This isn’t Apple’s first attempt at diversifying production. The tech giant has already ramped up iPhone assembly in India and Vietnam in recent years, but Brazil could now play a larger role as a fallback option if U.S.-China tensions intensify.

Exemptions Still Unclear Amid Policy Volatility

While a path for exemptions seems to exist, no clear criteria or application process has been defined. Trump has shown a tendency to frequently change his stance, adding uncertainty for companies heavily reliant on Chinese imports.

Until further announcements are made, most U.S.-based firms—particularly in the tech, automotive, and consumer electronics sectors—will be bracing for potential cost increases and looking for alternative strategies.