How Trump fell out of love with Apple CEO Tim Cook
'It has put Apple at a disadvantage because every move, including a potential concession from Trump, is scrutinised,' Wexler said. Because Trump didn't 'have much incentive to either go easy on Apple or cut a deal on tariffs,' he said, 'the incentive to crack down is much stronger.'
Apple did not provide comment. The White House declined to comment on the Middle East trip.
Trump's new tariff threat followed a report by The Financial Times that Apple's supplier Foxconn would spend $US1.5 billion ($2.3 billion) on a plant in India for iPhones. The president said the tariffs would begin at the end of June and affect all smartphones made abroad, including Samsung's devices.
Last week, Cook had visited Washington for a meeting with Treasury Secretary Scott Bessent. During an appearance on Fox News on Friday, Bessent said the administration considered overseas production of semiconductors and electronics components 'one of our greatest vulnerabilities,' which Apple could help address.
'President Trump has been consistently clear about the need to reshore manufacturing that is critical to our national and economic security, including for semiconductors and semiconductor products,' said Kush Desai, a White House spokesperson. He added that the administration 'continues to have a productive relationship with Apple.'
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The timing of the White House's new tariff plan couldn't be worse for Cook, who has led Apple for nearly 14 years.
Last month, the company suffered a stinging defeat in an App Store trial. The judge in the trial rebuked Apple executives, saying they had 'outright lied under oath' and that 'Cook chose poorly,' and ruled that Apple had to change how it operates the App Store. Jony Ive, Apple's former chief designer who became estranged from Cook and left the company in 2019, joined OpenAI last week to build an iPhone competitor. Its Vision Pro mixed reality headset, released in January 2024 to fanfare, has been a disappointment. And in March, Apple postponed its promised release of a new Siri, raising fresh doubts about its ability to compete in the industry's race to adopt artificial intelligence.
Still, Apple's market value has increased by more than $US2.5 trillion under his leadership, or about $US505 million a day since 2011. And Apple remains a moneymaking machine, generating an annual profit of nearly $US100 billion.
With Trump's reelection, Cook appeared to be in a strong position to help Apple navigate the new administration. In 2019, Trump said Cook was a 'great executive because he calls me and others don't.'
Cook still occasionally pushed back on the president's agenda. During an appearance at a conference for Fortune magazine in late 2017, Cook explained that the company would love to make things in the United States but that China had more engineers and better skills. He appeared before a live audience on MSNBC a few months later and criticised the president's policy on immigration.
This year, their warm relations have run cold. Trump is more determined to quickly move manufacturing to the United States, which has made Apple a primary target.
On other administration priorities like dismantling diversity initiatives, Cook has tried to take a diplomatic position. At its annual general shareholder meeting in February, he said that Apple remained committed to its 'North Star of dignity and respect for everyone' and would continue to 'create a culture of belonging,' but that it might need to make changes to comply with a changing legal landscape.
The bigger problem has been trade. Apple has stopped short of committing to making the iPhone, iPad or Mac laptops in the United States. Instead, the company has moved to assemble more iPhones in India.
Apple has tried to head off Trump's criticisms of its overseas manufacturing by promising to spend $US500 billion in the United States over the next four years. Cook also has emphasised that the company will source 19 billion chips from the United States this year and will start making AI servers in Houston.
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Servers haven't satisfied Trump. He wants iPhones made in the United States badly enough to create what amounts to an iPhone tariff. It would increase the cost of shipping an iPhone from India or China to the United States by 25 per cent. The costs aren't so staggering that they would damage Apple's business, but Trump could always ratchet up the levies until he gets his wish.
'If they're going to sell it in America, I want it to be built in the United States,' Trump said Friday. 'They're able to do that.'
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"They have a good relationship, and I am confident that the Chinese will come to the table when President Trump makes his preferences known." The US-China agreement to dial back triple-digit tariffs for 90 days prompted a massive relief rally in global stocks. But it did nothing to address the underlying reasons for Trump's tariffs on Chinese goods, mainly longstanding US complaints about China's state-dominated, export-driven economic model, leaving those issues for future talks. Since the mid-May deal, the Trump administration has concentrated on tariff negotiations with other major trading partners, including India, Japan and the European Union. Trump last week threatened 50 per cent tariffs on EU goods, only to delay that threat. A US trade court on Wednesday ruled that Trump overstepped his authority in imposing the bulk of his tariffs on imports from China and other countries under an emergency powers act. But less than 24 hours later, a federal appeals court reinstated the tariffs, saying it was pausing the trade court ruling to consider the government's appeal. The appeals court ordered the plaintiffs to respond by June 5 and the administration to respond by June 9. Bessent said earlier that some trading partners, including Japan, were negotiating in good faith and that he detected no changes in their postures as a result of the trade court ruling. Bessent said he would meet with a Japanese delegation on Friday in Washington. US trade talks with China are "a bit stalled" and getting a deal over the finish line will likely need the direct involvement of President Donald Trump and Chinese President Xi Jinping, US Treasury Secretary Scott Bessent says. Two weeks after breakthrough negotiations led by Bessent that resulted in a temporary truce in the trade war between the world's two biggest economies, Bessent told Fox News that progress since then has been slow, but said he expects more talks in the next few weeks. "I believe we may at some point have a call between the president and party chair Xi," Bessent said. "Given the magnitude of the talks, given the complexity ... this is going to require both leaders to weigh in with each other," he said. "They have a good relationship, and I am confident that the Chinese will come to the table when President Trump makes his preferences known." The US-China agreement to dial back triple-digit tariffs for 90 days prompted a massive relief rally in global stocks. But it did nothing to address the underlying reasons for Trump's tariffs on Chinese goods, mainly longstanding US complaints about China's state-dominated, export-driven economic model, leaving those issues for future talks. Since the mid-May deal, the Trump administration has concentrated on tariff negotiations with other major trading partners, including India, Japan and the European Union. Trump last week threatened 50 per cent tariffs on EU goods, only to delay that threat. A US trade court on Wednesday ruled that Trump overstepped his authority in imposing the bulk of his tariffs on imports from China and other countries under an emergency powers act. But less than 24 hours later, a federal appeals court reinstated the tariffs, saying it was pausing the trade court ruling to consider the government's appeal. The appeals court ordered the plaintiffs to respond by June 5 and the administration to respond by June 9. Bessent said earlier that some trading partners, including Japan, were negotiating in good faith and that he detected no changes in their postures as a result of the trade court ruling. Bessent said he would meet with a Japanese delegation on Friday in Washington. US trade talks with China are "a bit stalled" and getting a deal over the finish line will likely need the direct involvement of President Donald Trump and Chinese President Xi Jinping, US Treasury Secretary Scott Bessent says. Two weeks after breakthrough negotiations led by Bessent that resulted in a temporary truce in the trade war between the world's two biggest economies, Bessent told Fox News that progress since then has been slow, but said he expects more talks in the next few weeks. "I believe we may at some point have a call between the president and party chair Xi," Bessent said. "Given the magnitude of the talks, given the complexity ... this is going to require both leaders to weigh in with each other," he said. "They have a good relationship, and I am confident that the Chinese will come to the table when President Trump makes his preferences known." The US-China agreement to dial back triple-digit tariffs for 90 days prompted a massive relief rally in global stocks. But it did nothing to address the underlying reasons for Trump's tariffs on Chinese goods, mainly longstanding US complaints about China's state-dominated, export-driven economic model, leaving those issues for future talks. Since the mid-May deal, the Trump administration has concentrated on tariff negotiations with other major trading partners, including India, Japan and the European Union. Trump last week threatened 50 per cent tariffs on EU goods, only to delay that threat. A US trade court on Wednesday ruled that Trump overstepped his authority in imposing the bulk of his tariffs on imports from China and other countries under an emergency powers act. But less than 24 hours later, a federal appeals court reinstated the tariffs, saying it was pausing the trade court ruling to consider the government's appeal. The appeals court ordered the plaintiffs to respond by June 5 and the administration to respond by June 9. Bessent said earlier that some trading partners, including Japan, were negotiating in good faith and that he detected no changes in their postures as a result of the trade court ruling. Bessent said he would meet with a Japanese delegation on Friday in Washington.
