Trump claims Apple CEO backs China tariff reduction

The U.S.-China tariff suspension announced by President Trump has sparked a rally in Apple shares as the tech giant navigates complex trade relationships while expanding U.S. operations. This development comes amid ongoing pressure from the Trump administration for Apple to relocate more manufacturing to American soil, highlighting the delicate balance tech companies must maintain between global supply chains and domestic production demands.

The big picture: Apple stock jumped 6% following the announcement of a 90-day suspension of most U.S.-China tariffs, outpacing the broader tech market’s 3% gain.

• President Trump claimed in an Oval Office statement that he spoke with Apple CEO Tim Cook, who will supposedly increase Apple’s U.S. manufacturing investments.
• Trump referenced Apple’s plans to “up his numbers” to $500 billion in U.S. investments, including building “a lot of plants” domestically.

Behind the numbers: Apple had previously announced a $500 billion U.S. expansion plan in February, which included assembling AI servers in Houston.

• The company’s strong market reaction reflects its significant exposure to China both as a manufacturing hub and as its third-largest sales market.
• Despite the tariff pause, Apple still faces 30% tariffs on Chinese imports even after Sunday’s agreement, with additional 10% tariffs affecting its production in India and Vietnam.

Key details: Most of Apple’s core products, including smartphones and computers, had already received exemptions from the highest 145% tariffs in April.

• Apple has been strategically diversifying its production beyond China to locations like Vietnam and India to mitigate tariff impacts.
• Cook recently told investors the company was sourcing American-bound products from these alternative locations but was hesitant to predict beyond June, calling the situation “difficult to predict.”

What they’re saying: The Trump administration has repeatedly pressured Apple to bring device production, including iPhone manufacturing, to the United States.

• Industry experts consider complete relocation of Apple’s manufacturing to the U.S. both unlikely and prohibitively expensive.
• Apple declined to comment on the President’s statements about their manufacturing plans.