President-elect Donald Trump has proposed sweeping tariffs on China, where Apple manufactures many of its products. Yet Apple’s stock is hitting all-time highs. Here’s why.
Apple’s foreign competition serving as safeguard against new Trump tariffs
Deepwater Asset Management, where Gene Munster is Managing Partner, has shared its 2025 predictions for the market.
One such prediction has to do with Apple (and Tesla), providing a glimpse into how Wall Street is viewing the looming Trump tariffs and their impact on US tech companies.
Apple and Tesla will receive tariff waivers (if Trump executes his proposed China tariffs) – Make no mistake, increased tariffs are coming for many manufacturers, but Apple and Tesla will be spared high tariffs – Trump doesn’t want Tesla to lose to BYD or Apple to lose to Samsung.
This lines up with what other investors and analysts seem to expect from Trump’s incoming administration.
Despite the high likelihood of sweeping new tariffs on the way, Apple appears like it should mostly avoid any new financial burden.
Trump’s first administration provides hints for what’s coming
In some ways, Trump’s first administration establishes a lot of precedent for what Apple could face these next four years.
In 2019, then-President Trump met with Apple CEO Tim Cook for dinner. During the meal, per Trump’s own words, Cook ‘made a very compelling argument’ for Apple receiving tariff exemptions.
Cook reportedly argued that it would be hard for Apple to pay tariffs on its Chinese-assembled products, because many of its competitors do not have to pay the same level of tariffs, namely Samsung, whose manufacturing is mostly located in South Korea
That same reasoning is behind Deepwater’s belief that Apple will benefit from tariff waivers again this time around.
While Trump undoubtedly wants Apple to move more of its manufacturing out of China, he also doesn’t want to harm a US-based company that’s facing stiff competition from overseas players.
As Trump’s inauguration draws near, perhaps it’s unsurprising that Cook just had another meal with the incoming US leader.
Do you think Apple will be impacted at all by new tariffs? Let us know in the comments.
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