There's a big question mark over how President Trump's trade war with China will impact iPhone lovers. And things just got even murkier.
President Trump continued to escalate his trade war with China on Watch Project X OnlineMonday when he threatened to levy tariffs on an additional $200 million worth of Chinese goods -- which in turn prompted retaliatory threats from China. That should have Apple very worried, considering that iPhones depend on importing and exporting in both directions.
But apparently, President Trump recently reassured Apple CEO Tim Cook and told him not to worry. An anonymous source told the New York Timesthat Trump told Cook that the tariffs would not apply to iPhones. Phew!
SEE ALSO: What do Trump and Apple want from each other, anyway?Well that settles that! Right? Ehh, not quite.
In typical Trump administration fashion, one of Trump's top trade advisers refuted that claim in the press. Peter Navarro told CNBC Tuesday that he knew of no such exemption for iPhones.
Apple both exports iPhone parts made in the US into China, and imports iPhones assembled in China to the US. A trade war means it could have to pay a lot of extra cash to both governments, which could make iPhones even more expensive.
Cook has been putting in a lot of face time with both Chinese and American leaders of late, according to a report from the New York Times. Cook and Trump met in April where they reportedly discussed economic growth and trade. Cook has tried to convince President Trump that a trade war would undermine all the good work Cook said that Trump did with his tax cuts (Cook has been open about keeping some Apple profits outside of the US in order to avoid steep taxes).
So will Apple bear the brunt of Trump's trade war? According to Trump, no. Which means we still have no idea.
Topics Apple iPhone Donald Trump Politics
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