👉 Background: When Donald Trump first announced the tariffs on China, it started at 10% and then Trump jacked them up to 34%... then 54%... then 104%. Finally, it landed on 145% tariffs in response to China’s tariffs on the US.

‍👉 What happened: Every company making stuff in China collectively freaked out — but none more than Apple. Because when 87% of your iPhones are assembled in China, that 145% tariff feels like someone just added another zero to your retail price. In fact, there was talk that iPhone prices could increase by more than 40% if this tariff stuck.

‍👉 What else: But now, Donald Trump has announced consumer electronics are exempt from the tariff hike - that includes iPhones, iPads, Macs, Apple Watches and AirTags. Next minute: Apple’s share price jumped over 11%. Trump claims he spoke to Apple CEO Tim Cook and decided to ‘help’ him out.

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‍What's the key learning?

💡When a company gets so powerful, it can often become untouchable. Apple isn’t just a company; it’s a global economic force.

💡Apple currently supports around 3 million jobs in China and it has trained a generation of engineers and manufacturers to meet their stringent global manufacturing standards. On the other hand, Apple shares have propped up American retirement funds through its near $3 trillion USD market cap.

💡If these 145% tariffs were whacked on Apple phones, it would really hurt Apple’s share price and really hurt China’s economy too, especially if they were to move more of its assembly from China to India. Because if Apple stumbles, the stock market, the global economy and that smartphone in your hand definitely feels it too.