The relationship between Tim Cook and US President Donald Trump, combined with a flexible strategy, has helped Apple not be affected by the new tax policy.
On April 11, the US Customs and Border Protection (CPB) announced a corresponding tax exemption for important consumer electronics such as smartphones, laptops, hard drives, memory chips, as well as machinery for manufacturing semiconductors and solar panels. On April 13, Mr. Trump wrote on the social network Truth Social that these products "are moving to a different tax rate".
According to Reuters, although there may still be a different tax, the new development is beneficial for technology companies, especially Apple, which is completely dependent on foreign production.
Citing two inside sources, the Washington Post said Apple CEO Tim Cook met with US Commerce Secretary Howard Lutnick last week to discuss the potential impact of tariffs on iPhone prices. He also spoke with several other senior officials at the White House about the issue.
Unlike other tech CEOs, Cook did not publicly criticize the US President in the media about the new reciprocal tax policy. Instead, he chose to meet privately.
Previously, according to Bloomberg, Mr. Trump's reciprocal tax has made many tech leaders restless. Some CEOs such as Nvidia's Jensen Huang, Google's Sundar Pichai and Apple's Tim Cook have traveled to the White House and Mar-a-Lago to find ways to limit the impact. The Washington Post described the new policy as "sparking a lobbying frenzy" in Washington, as companies race to reduce potential financial damage.
As a result, the Trump administration agreed to sit down with the companies, but the US president is said to hate the "exemption" because it undermines the importance of the new tax policy. About a week later, the new tariffs on electronics were suspended. Although not fully exempted, observers consider Apple and some companies to have won a significant victory on tariffs.
White House spokesman Kush Desai denied that the administration "did any specific favors for Tim Cook and Apple". However, speaking to reporters earlier this week, Mr. Trump said: "I spoke to Tim Cook recently. I helped him and the entire industry. I don't want to hurt anybody".
"Tim has a very good relationship with the president. He's very cautious because he obviously depends a lot on China, but he's also incredibly important to the United States," said Wilbur Ross, a former commerce secretary during Trump's first term.
Cook is “highly respected” for not being a whiner, which helps him win the favor of the US president, Ross said. “I’m not surprised that his suggestions are well received,” Ross added.
Trump and Cook have a close relationship and are considered “a real source of envy and emulation in the business world.” The two dined privately during their first term, and Trump later agreed to cut tariffs on China after Cook directly requested it.
Earlier this month, the Washington Post quoted an attendee at a $1 million donation to the presidential inaugural fund late last year as saying that Trump asked venture capitalist Marc Andreessen what he thought of Cook. Andreessen said he was impressed with the Apple CEO’s leadership. Trump agreed, saying he also appreciated the way Cook met him directly without an intermediary.
Since the tax exemption was announced, Apple shares have recovered 7% in value. A 145% tariff on imports from China could force Apple to charge more than $2,000 for the iPhone Pro, according to estimates from financial firm Wedbush Securities. Dan Ives, director of technology research at Wedbush Securities, told CNN that the price could even rise to $3,500 if it were made in the US instead of the current $1,000.