Apple CEO Tim Cook dinner gifted former President Donald Trump a $6,000 Mac Professional laptop after the 2 males reached a deal for the tech large to obtain an exemption to a collection of tariffs in 2019, in response to Bloomberg.
On the time Apple and Cook dinner had been making use of a allure offensive to influence then-President Trump to take away tariffs on sure elements that got here from China. Cook dinner requested Trump if he might meet him in particular person to make Apple’s case, a gesture the previous president discovered “impressive,” he advised Bloomberg. Trump was notably happy on the time that Cook dinner reached out, particularly contemplating his acrimonious relationship with different tech CEOs.
“Tim Cook calls Donald Trump directly,” Trump stated in August 2019. “That’s why he’s a great executive, because he calls me, and others don’t.”
Shortly after taking workplace, Trump had imposed 25% tariffs on 10 components utilized in constructing Mac Professional computer systems that got here from China. The worth improve meant probably billions of {dollars} in further prices for Apple, however when Apple first sought an exception on the commerce tariffs, Trump responded along with his traditional obstinance.
“Apple will not be given Tariff waiver, or relief, for Mac Pro parts that are made in China,” Trump posted on X (nonetheless Twitter on the time). “Make them in the USA, no Tariffs!”
Finally Apple and the Trump administration reached an settlement: the White Home would grant Apple an exemption to the tariffs and Apple would construct the computer systems within the U.S. As soon as the manufacturing traces had been up and operating, Cook dinner gifted Trump one of many first Mac Professionals constructed on the manufacturing unit, in response to Bloomberg. The Mac Professional is Apple’s strongest laptop and customarily focused towards professionals that require giant quantities of computing energy. It’s unclear what Trump did with the reward or how he reacted to receiving it.
Apple and the Trump marketing campaign didn’t reply to a request for remark concerning the reward.
In Trump’s telling of the story, he induced Cook dinner to extend Apple’s manufacturing footprint within the U.S. in trade for lifting the tariffs. “I said, ‘I’m gonna do something for you guys,’” Trump advised Bloomberg, “‘but you have to build in this country.’”
In actuality, the Mac Professional was already assembled within the U.S. Nevertheless, Apple nonetheless gave Trump the looks of strong-arming a Massive Tech firm when it introduced a $1 billion funding in an meeting plant in Austin, Tex. Apple, although, was planning the funding a yr earlier, earlier than the dispute over the Chinese language tariffs, in response to Bloomberg. Nonetheless, Cook dinner and Trump appeared collectively in November 2019 on the Austin meeting facility. Observers on the time thought-about it a minor win for Trump—who bought a photograph op in an American manufacturing unit—in addition to for Cook dinner—who skirted painful tariffs with a producing funding that had already been within the works at Apple.
Apple and Cook dinner could very effectively should resort to the identical playbook ought to Trump take workplace once more. The previous president has made no secret of his want to impose even larger tariffs, as much as 60% on any imports from China and 10% on imports from anyplace else. Economists contemplate the coverage inflationary for the whole economic system and analysts imagine it might be disastrous for Apple given its heavy reliance on China to fabricate a lot of its hottest merchandise just like the iPhone.
As a possible contingency plan, Apple has been diversifying its manufacturing areas away from China. In April, throughout a visit throughout South Asia, Cook dinner introduced Apple deliberate to spend extra with suppliers in Vietnam and Indonesia, though particulars had been scant.
Nonetheless, given Trump’s need to impose tariffs on any international items, manufacturing in Vietnam or Indonesia, versus China, would nonetheless lead to a value improve for Apple. For his half although Trump reveals little intention on relenting on the subject of tariffs.
“I can’t believe how many people are negative on tariffs that are actually smart,” Trump advised Bloomberg. “Man, is it good for negotiation.”
If Trump had been certainly to win reelection and implement his tariff coverage, Cook dinner will seemingly financial institution on his cozy relationship with the previous president, which earned him an exemption 5 years in the past. Trump does appear to have a good quantity of goodwill for Cook dinner, the chief government of the world’s most respected firm.
“I found him to be a very good businessman,” Trump stated about Cook dinner.
