Donald Trump’s decision to exempt electronics from the new reciprocal tariffs spared tech giants like Apple from a potential crisis.
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00:00Remember when Apple flew out 600 tons of iPhones from India to the US on 9th April 2025?
00:06Apple just dodged a crisis, and that too a big one.
00:08US President Donald Trump's tariffs on China had Apple worried.
00:11For purposes of fairness, that I will charge a reciprocal tariff.
00:16Why? The iPhone is Apple's biggest moneymaker, and 84% of them are produced in China,
00:20along with 60% of Macs and about 4 and 5 iPads.
00:23They generate 17% of their revenue from China.
00:26Had the Trump administration not exempted electronics from these tariffs,
00:30the cost of Apple products would have skyrocketed.
00:32For example, an iPhone 16 Pro Max with 256GB storage sells for $1,199 in the US.
00:38The price would have gone up to $2,000.
00:41So in order to avoid these steep rates on Chinese goods, Apple flew in iPhones from India.
00:45Apple has three factories in India managed by Tata and Foxconn, with two more being built.
00:49Electronics have been exempt from these tariffs, but only for now.
00:52As per US Commerce Secretary Howard Lutnik,
00:54Smartphones, computers and other electronics will come under separate tariffs along with semiconductors.
00:59These tariffs could come into effect between April and May of 2025.