President Trump's tariffs have sure caused a lot of ruckus. Initially, electronic devices were part of the tariffs but got exempted not too long ago. Apple CEO Tim Cook may have something to do with it.
According to The Washington Post, Cook managed to call Commerce Secretary Howard Lutnick last week and explained to him how the tariffs would increase iPhone prices instead. He also had a chat with senior White House officials without mentioning anything negative about Trump's policies that would not make Trump happy. We guess his effort paid off in the end.
However, this is only temporary. We recently reported that Lutnick told ABC News that it is not a permanent sort of exemption. Currently, the US government is looking into putting electronic devices such as phones, laptops and others into a "special focus type of tariff", applied to the semiconductor industry.
To the uninitiated, the tariffs are taxes on imported goods that are coming into a country. In theory, this move can help local businesses to sell better as compared to exported goods, like a Proton vehicle and a foreign-branded car. However, a smart device like an iPhone is complicated, as it relies on various components from around the world, such as China, which got slapped with high tariffs by Trump, up to 245% right now.
An iPhone made in the US may sound like a great idea, but there are also many obstacles. As many sources and experts note, planning the cost of building factories will take years, needing time to train skilled labourers and paying them fair wages would increase the iPhone prices higher than before. Time will tell how this will proceed.
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