Apple’s Trump tariffs reprieve prompts tough questions from one U.S. Senator
Image credit —Alireza Khoddam on Unsplash
Apple may have dodged a financial hit from sky-high tariffs, but CEO Tim Cook is now facing some tough questions from Senator Elizabeth Warren, reports Mark Gurman at Bloomberg. The senator is asking Apple to come clean about its private conversations with the Trump administration that may have played a key role in exempting Apple products from a planned 145% tariff hike.
Earlier this month, former President Donald Trump proposed a sweeping set of tariffs on Chinese-made goods, which could have dramatically impacted Apple’s bottom line. Since most of Apple’s products, including the iPhone, are built in China, the tariffs could have either forced Apple to raise prices or eat the extra costs. But just a couple of weeks later, the administration announced exceptions for several electronics categories, some would say "conveniently" covering Apple’s flagship devices.
In a letter obtained by Bloomberg, Warren questioned how those carve-outs came to be and whether Apple used its considerable influence to sway the decision. She pointed to reports that Cook had engaged in private talks with Trump officials and asked him to provide details about what was said, when the talks happened, and when Apple learned about the exemptions. The letter also brings up Cook’s attendance at Trump’s January inauguration and a $1 million donation Apple made to the event’s committee.
At best, your work to eliminate the tariffs on Apple products, and President Trump’s subsequent decision to exempt certain Apple products, creates the appearance of impropriety. However, recent reporting also raises serious questions about the extent to which it is possible for massive corporate special interests to use their money and influence to secure tariff exemptions that are unavailable to Main Street small businesses.
— Elizabeth Warren, United States Senator
Apple’s close ties to China have long made it vulnerable to global trade tensions. And although the company managed to avoid this particular blow, the Trump camp has already suggested more tariffs could be coming. If that happens, Apple could once again find itself at the center of political and economic crossfire.
Competitors like Samsung and Google aren’t immune either, but Apple’s scale and reliance on Chinese manufacturing put it in a unique position. We'll have to see how Apple responds to the Senator's request and whether this will add to the already rocky situation Apple finds itself in.
FCC OKs Cingular\'s purchase of AT&T Wireless
Things that are NOT allowed:
To help keep our community safe and free from spam, we apply temporary limits to newly created accounts: