# Apple was on brink of crisis before Trump tariff concession | Tech News (HT Tech) > White House policies are likely to shift again, and Apple may need to pursue more dramatic changes. # Apple was on brink of crisis before Trump tariff concession ## White House policies are likely to shift again, and Apple may need to pursue more dramatic changes. Apr 14 2025, 11:06 IST ![Follow on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/follow-us-facebook.png) ![Follow on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/follow-us-facebook-hover.png) ![Share](https://images.hindustantimes.com/tech/static/revamp/images/png/Share.png) ![Share](https://images.hindustantimes.com/tech/static/revamp/images/png/Shareclicked.png) ![Share on WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/whatsapp.png) ![Share on WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/whatsapp-hover.png) ![Share on Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/twitter.png) ![Share on Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/twitter-hover.png) ![Share on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/facebook.png) ![Share on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/facebook-hover.png) ![Bookmark](https://images.hindustantimes.com/tech/static/revamp/images/png/Bookmark.png) ![Bookmarked](https://images.hindustantimes.com/tech/static/revamp/images/png/Bookmarked.png) ![Apple was on brink of crisis before Trump tariff concession](https://images.hindustantimes.com/tech/img/2025/04/14/1600x900/Apple_1710744012052_1744608858145.jpg) A new and lower so-called sectoral tariff may still come on goods that have semiconductors, and a 20% tariff still applies to electronics shipped from China. (Bloomberg) ![Author Photo](https://images.hindustantimes.com/tech/static/revamp/images/png/HTTech-new-circle-logo.png) ### By BLOOMBERG Apple Inc. has managed to dodge its biggest crisis since the pandemic — for the moment, at least. Donald Trump’s 125% tariffs on goods produced in China threatened to upend its supply chain as seriously as the Covid snarls did five years ago. On Friday night, the US president handed Apple a major victory, exempting many popular consumer electronics. That includes iPhones, iPads, Macs, Apple Watches and AirTags. Another win: The 10% tariff on goods imported from other countries has been dropped for those products. Also read click here. A new and lower so-called sectoral tariff may still come on goods that have semiconductors, and a 20% tariff still applies to electronics shipped from China. Over the weekend, Trump pledged he will still apply tariffs to phones, computers and popular consumer electronics, portraying the exemptions as a procedural step in a broader effort to remake US trade. Still, the timing for such a move remains uncertain. Till then, the surprise exemption marks a win for Apple and a consumer electronics industry that still heavily relies on the Asian nation for manufacturing. “This is a major relief for Apple,” Evercore ISI analyst Amit Daryanani said in a note on Saturday. “The tariffs would have driven material cost inflation.” He expects the shares to rally Monday following an 11% rout this month. Before the latest exemption, the iPhone maker had a plan: adjust its supply chain to make more US-bound iPhones in India, which would have been subject to far lower levies. That, Apple executives believed, would be a near-term solution to avoid the eye-watering China tariff and stave off hefty price hikes. Given that the iPhone facilities in India are on pace to produce more than 30 million iPhones per year, manufacturing from that country alone could have fulfilled a fair chunk of American demand. Apple, these days, sells about 220 million to 230 million iPhones annually, with about a third of those going to the US. Such a shift would be difficult to pull off without a hitch, especially because the company is already nearing production of the iPhone 17, which will be made primarily in China. Within Apple’s operations, finance and marketing departments, fears had grown about the impact on the fall launch of new phones — and fueled a sense of dread. The company, in just a few months, would have needed to pull off the herculean task of moving more iPhone 17 production to India or elsewhere. It likely would have had to increase prices — something that’s still possible — and fought with suppliers for better margins. And Apple’s famous marketing engine would have had to convince consumers it was all worth it. But the feeling of uncertainty remains. White House policies are likely to shift again, and Apple may need to pursue more dramatic changes. At least for now, though, management is breathing a sigh of relief. The Chinese Ministry of Commerce called the move “a small step by the US toward correcting its wrongful action of unilateral ‘reciprocal tariffs’, and urged the US to “take a big stride in completely abolishing the wrongful action, and return to the correct path of resolving differences through equal dialog based on mutual respect.” However, smartphones other electronic devices that won exemptions will be part of a forthcoming levy on semiconductors, according to US Commerce Secretary Howard Lutnick. Speaking Sunday on ABC’s This Week, Lutnick signaled that the late Friday reprieve — exempting a range of electronics from 125% tariffs on China and a 10% flat rate around the globe — was temporary, and reiterated Trump’s longstanding plan to apply a different, specific levy to the sector. Another concern: If Apple moves even more production from China at a rapid pace, how would the country retaliate? Apple generates about 17% of its revenue from the country and operates dozens of stores, making it an outlier among US-based companies. An Apple spokesman declined to comment. China has launched competition inquiries into US companies and could create issues for Apple through its own customs process. In recent years, it has also banned iPhones, among other US-designed devices, from its legion of government workers. That followed a US crackdown on Chinese tech champion Huawei Technologies Co. The iPhone is Apple’s biggest moneymaker, and about 87% of them are produced in China, according to estimates from Morgan Stanley. About four in five iPads also are made in the country, along with 60% of Macs. All together, those products are responsible for about 75% of Apple’s annual revenue. Still, the company now builds nearly all of its Apple Watches and AirPods in Vietnam. Some iPads and Macs are also manufactured in that country, and Mac production is expanding in Malaysia and Thailand. The company generates about 38% of its iPad sales in the US, as well as about half its Mac, Apple Watch and AirPods revenue, Morgan Stanley estimates. A complete split with China — Apple’s manufacturing hub for decades — would be unlikely. Though Trump has pushed Apple to make iPhones in the US, the lack of domestic engineering and manufacturing talent will make that nearly impossible in the short run. The size and scale of the facilities in China makes it unmatched in speed and efficiency. The China production also is crucial for Apple’s sales in the world beyond the US. The Cupertino, California-based company gets nearly 60% of its revenue outside of the Americas. Since a wave of tariffs were announced on April 2, lobbyists from Apple and other technology companies have been pushing the White House for exemptions. But the discussions took on extra urgency in recent days after a series of tit-for-tat retaliations between Washington and Beijing led to what amounted to 145% duties on imports from China. The potential impact was even more stark after Trump paused higher tariffs on other countries. That meant Apple rival Samsung Electronics Co., which makes its phones outside China, would have had an edge. Apple and other companies have been stressing to the Trump administration that — while they are willing to increase investment in the US — there’s little benefit in moving final assembly to the country. Instead, they have argued, the US should be focusing on bringing back higher-value jobs and encouraging investment in things like semiconductor production. Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel. 14 Apr, 11:06 IST apple ![HT Tech Awards](https://tech.hindustantimes.com/ht-tech-power-list-awards-2026/httech-awards-banner-new.webp) ### Related Stories 05 Oct 2026 71,744,602,930,917 NEXT ARTICLE BEGINS ![View all](https://images.hindustantimes.com/tech/static/revamp/images/png/view-all-icon.png) ## Tips & Tricks ![Ghibli-style art](https://images.hindustantimes.com/tech/img/2025/03/28/414x233/ChatGPT_Ghibli_style_images_1743161814450_1743161814596.jpg) ### How to turn your photos into Ghibli-style art with ChatGPT for free: Step-by-step guide ![How to create an invitation using iPhone’s new Apple Invites app- Step-by-step guide](https://images.hindustantimes.com/tech/img/2025/02/14/414x233/invites_1738728829564_1739543695649.png) ### How to create an invitation using iPhone’s new Apple Invites app- Step-by-step guide ![Apple TV app arrives on Android phones and tablets: What you get and how to install it](https://images.hindustantimes.com/tech/img/2025/02/13/414x233/unnamed_1739426557335_1739426567634.jpg) ### Apple TV app arrives on Android phones and tablets: What you get and how to install it ![Vodafone Idea OTT plans](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Vodafone Idea users can now stream 17 OTT apps with one subscription: Here's how ![Android data transfer methods](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### How to transfer data from one Android to another using Google backup, USB-C cable, and more ## Editor’s Pick ![iPhone 16e launched with A18 chip, Apple AI—bringing flagship power on a budget: Check specs, price](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### iPhone 16e launched in India: All details about the new budget mobile from Apple ![DeepSeek was founded in China with only a fraction of the budget of the top AI companies in the US.](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### DeepSeek AI: How it works, who’s behind it, how it’s different from ChatGPT, and its big US market impact explained ![iPhone 17 Air likely to get this feature that iPhone 17 Pro models may miss out on](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### iPhone 17 Air likely to get this feature that iPhone 17 Pro models may miss out on ![Google Whisk AI explained: How remixing works, availability, and how it differs from Gemini](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Google Whisk AI explained: How remixing works, availability, and how it differs from Gemini ![iOS 18.4 beta arriving soon: Know why it is the biggest iPhone update](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### iOS 18.4 beta arriving soon: Know why it is the biggest iPhone update ## Trending Stories ![Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order ![Infinix Note 50s 5G+](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Infinix Note 50s 5G+ set to launch in India with 64MP camera and MediaTek Dimensity 7300 SoC ![Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more ![Apple Intelligence AI training](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Apple plans to train AI using your on-device data without accessing personal content or emails: Report ![CMF Buds 2](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### CMF Buds 2 key features and price revealed ahead of April 28 launch: Details inside keep up with tech ![Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-facebook.png) ![Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-twitter.png) ![WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-whatsApp.png) ![Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-facebook.png) ## Gaming ![Check out these five gaming monitors under ₹20,000,](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Top 5 gaming monitors under ₹20000 you should consider ![gaming consoles](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Grab gaming consoles at discounted rates during Amazon Great Indian Festival: Up to 72% off ![Pokémon GO Wild Area 2025](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Pokémon GO Wild Area 2025 to bring Grimmsnarl family, Shiny Hatenna, and global challenges ![Shade Silver](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Shade Silver free on Steam for a limited time: Here’s how to get it ![Call of duty](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Call of Duty: Black Ops 7 skips Switch 2 at launch, release date and price leak ![View all](https://images.hindustantimes.com/tech/static/revamp/images/png/view-all-icon.png) ## Trending News ### Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order ![Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order](https://images.livemint.com/static/static/1x1_img.gif) ### Infinix Note 50s 5G+ set to launch in India with 64MP camera and MediaTek Dimensity 7300 SoC ![Infinix Note 50s 5G+](https://images.livemint.com/static/static/1x1_img.gif) ### Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more ![Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more](https://images.livemint.com/static/static/1x1_img.gif) ### Apple plans to train AI using your on-device data without accessing personal content or emails: Report ![Apple Intelligence AI training](https://images.livemint.com/static/static/1x1_img.gif) ### CMF Buds 2 key features and price revealed ahead of April 28 launch: Details inside ![CMF Buds 2](https://images.livemint.com/static/static/1x1_img.gif) ## Trending Gadgets Mobiles Laptops Tablets ![HT Tech](https://images.hindustantimes.com/tech/static/revamp/images/png/HT_tech-new.gif) - https://tech.hindustantimes.com/tech/news/apple-was-on-brink-of-crisis-before-trump-tariff-concession-71744602930917.html