President-elect Donald Trump has proposed sweeping tariffs on China, the place Apple manufactures a lot of its merchandise. But Apple’s inventory is hitting all-time highs. Right here’s why.
Apple’s international competitors serving as safeguard towards new Trump tariffs
Deepwater Asset Administration, the place Gene Munster is Managing Accomplice, has shared its 2025 predictions for the market.
One such prediction has to do with Apple (and Tesla), offering a glimpse into how Wall Road is viewing the looming Trump tariffs and their influence on US tech firms.
Apple and Tesla will obtain tariff waivers (if Trump executes his proposed China tariffs) – Make no mistake, elevated tariffs are coming for a lot of producers, however Apple and Tesla will probably be spared excessive tariffs – Trump doesn’t need Tesla to lose to BYD or Apple to lose to Samsung.
This strains up with what different buyers and analysts appear to count on from Trump’s incoming administration.
Regardless of the excessive probability of sweeping new tariffs on the way in which, Apple seems prefer it ought to principally keep away from any new monetary burden.
Trump’s first administration supplies hints for what’s coming
In some methods, Trump’s first administration establishes lots of precedent for what Apple may face these subsequent 4 years.
In 2019, then-President Trump met with Apple CEO Tim Prepare dinner for dinner. Throughout the meal, per Trump’s personal phrases, Prepare dinner ‘made a really compelling argument’ for Apple receiving tariff exemptions.
Prepare dinner reportedly argued that it could be laborious for Apple to pay tariffs on its Chinese language-assembled merchandise, as a result of a lot of its rivals don’t have to pay the identical stage of tariffs, particularly Samsung, whose manufacturing is generally positioned in South Korea
That very same reasoning is behind Deepwater’s perception that Apple will profit from tariff waivers once more this time round.
Whereas Trump undoubtedly needs Apple to maneuver extra of its manufacturing out of China, he additionally doesn’t need to hurt a US-based firm that’s going through stiff competitors from abroad gamers.
As Trump’s inauguration attracts close to, maybe it’s unsurprising that Prepare dinner simply had one other meal with the incoming US chief.
Do you assume Apple will probably be impacted in any respect by new tariffs? Tell us within the feedback.
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