Apple Buys Tariff Relief With Statue and Investment Pledge

Apple Buys Tariff Relief With Statue and Investment Pledge
  • calendar_today September 2, 2025
  • News

Apple seems to have discovered a new way to evade President Donald Trump’s trade war: by flattering the president. On Wednesday, Trump revealed that Apple will be exempted from an upcoming 100 percent tariff on semiconductors that would have driven up the price of iPhones in every corner of the world. The tariff reprieve, reported by Reuters, came on the same day Apple promised an additional $100 billion in U.S. investment and gifted Trump a custom-made, personalized statue.

Apple CEO Tim Cook said the statue was created by Corning, a company that has been working with Apple for decades to make specialty glass for iPhones. An ex-US Marine Corps corporal who now works at Apple designed the statue to be a large circle of glass cut into the shape of an Apple logo with one solid block of glass in the middle of the “O” reading “Trump.” Cook told Reuters that the statue “came out of Utah,” and was mounted on a 24-karat gold base engraved with Trump’s name. Cook finished it with his own message: “Made in America.”

Trump, who has been pressuring companies to make more of their products in America for years, seemed to appreciate the gift. At the ceremony in the Oval Office, Trump said Apple “will have no charge” when tariffs are applied to semiconductors, as will any other company that is building factories in America. It’s a significant break for Apple, which has been publicly harangued by Trump about the location of its supply chain for months.

Trump had had a particularly rough spring with Apple. After the iPhone manufacturer moved the production of some models to India instead of inside the U.S., Trump responded by tweeting at Apple for months, ultimately promising in April that he was “forcing things made in the USA like our great iPhones, which we no longer allow to be made in China, substantially back to the U.S.” In May, his public comments were less patient: Trump said on a trip through the Middle East that he had a “little problem with Tim Cook.” According to reports, he told Cook in a private conversation: “We are treating you really good, we put up with all the plants you built in China for years. We are not interested in you building in India.”

Experts, on the other hand, have long pointed out that moving iPhone assembly to the U.S. would be a long, complicated process that could take years to do—if it was possible at all. Trump’s team pushed back against that narrative, however. Commerce Secretary Howard Lutnick even went so far as to say that Apple was considering using “robotic arms” to match the level of precision achieved in Chinese factories.

While Trump has wanted to move the final assembly of iPhones to the U.S., however, Wednesday’s announcement indicates that the president has dialed back his expectations. Trump previously threatened a 25 percent tariff on Apple if iPhones weren’t assembled in the U.S. But on Wednesday, he said Apple’s latest moves were “a significant step toward the ultimate goal of ensuring that iPhones sold in America also are made in America.” For now, he’s given Apple a reprieve from further demands.

Cook also announced that while iPhone parts like semiconductors, glass, and Face ID modules are all already made in the U.S., there was no clear time period in which he expected full assembly to also occur domestically. In other words, it’s not going to happen “for a while,” he said.

This isn’t the first time Apple has leveraged promises and symbolic gestures to hold off Trump. Throughout the previous administration, Cook regularly parried Trump’s hardline demands with promises to build or invest in the U.S., which Trump seized upon but ultimately left largely unfulfilled. In 2017, Trump announced that Apple would build three “big, beautiful” plants in the U.S. One was eventually built—but instead of manufacturing iPhones or Macs, the Texas plant makes face masks. In 2019, Trump even toured a Texas plant where he said the country was “starting to make iPhones.” In reality, Apple dedicated that plant to MacBook Pro production.

Apple has now promised to spend a total of $600 billion in the U.S. over the next four years. While the number sounds large, it’s essentially what Apple already spends in the U.S., according to analysts who spoke to Reuters. The promise also resembles the pledges Trump received from Apple and other companies during his first term, and the ones Biden’s team extracted in 2021.

Trump has threatened to impose retroactive tariffs on any company that doesn’t follow through on similar promises. Apple doesn’t seem to be changing the calculus of its tariffs one way or another, however. Instead, it’s now counting on Trump not to make good on his threat and continue to allow the company to keep its assembly lines outside the U.S. (While in China) without tariff reprisals.