Apple CEO Tim Cook Reportedly Meets Trump As Tariff Impact Looms On iPhone Sales And Company's China Strategy

Amid escalating trade tensions between the U.S. and China, Apple Inc.’s AAPL CEO Tim Cook is said to have met President Donald Trump.

What Happened: Citing an anonymous source, Bloomberg reported a possible meeting between Cook and Trump at the White House. The purpose of the meeting, however, remains undisclosed.

The escalating trade war between the US and China has put Apple in a tricky situation. The Trump administration’s 10% tariff on Chinese goods could potentially hinder Apple’s efforts to revive its sluggish iPhone sales.

Moreover, China, Apple’s largest manufacturing hub, is contemplating an investigation into the company’s policies and the fees it charges app developers.

Also, this month, Apple faced pressure from the U.K. government to create a backdoor for accessing the encrypted data of its users worldwide.

This meeting with President Trump could be seen in the context of tariffs and privacy-related concerns from the U.K.

Apple did not immediately respond to Benzinga’s request for comment.

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Why It Matters: The tariffs imposed by the Trump administration raised concerns over the impact on the pricing of Apple products. Analysts at the Bank of America securities have suggested that Apple may need to increase iPhone prices by 9% to counter the tariffs.

The iPhone maker tried to shift its supply chain from China to India and Vietnam. While India is a major assembling hub for iPhones, Vietnam is a major hub for AirPods. However, the Chinese government is setting obstacles to this shift and has resorted to tightening controls on advanced equipment and critical materials. Additionally, the reciprocal tariffs on India announced by Trump have also become a cause of concern for the Tim Cook-led company.

Post-election, Cook had expressed his willingness to engage with the Trump administration. However, the two have previously had disagreements over Apple’s privacy policies, with Trump insisting that Apple should do more to assist federal law enforcement in accessing encrypted phones. Apple has consistently opposed such requests citing potential dangers from hackers.

Despite these challenges, Apple’s stock has surged over 10% in the past month, with CNBC's Jim Cramer attributing the momentum to the Chinese government’s national consumer subsidy programs that also cover Apple products.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.