Trump's iPhone olive branch is a significant trade war retreat
a year ago
- #US-China
- #tariffs
- #trade-war
- The US quietly exempted smartphones (code '8517.13.00.00') and other electronic goods from the 125% tariff on Chinese imports.
- Apple's iPhones, mostly made in China, would have faced significant price hikes (up to $2,000) without the exemption.
- Apple CEO Tim Cook could play a key role in brokering peace in the US-China trade war due to his influence in both economies.
- White House trade advisor Pete Navarro is reportedly sidelined, with Treasury Secretary Scott Bessent leading negotiations.
- The US has reversed its tariff strategy, now granting exemptions to countries with large trade surpluses (e.g., Taiwan, Vietnam).
- The UK, a US ally with a trade deficit, faces 25% tariffs on cars and medicines—contrary to the tariff policy's original intent.
- The shift in tariff exemptions contradicts the initial 'reciprocal tariff' approach, signaling policy confusion and market-driven adjustments.