Trump Creates Tariff Loophole for Apple and Potentially His Own Cellphone Company
WASHINGTON, D.C. – Yesterday, Trump announced 100% tariffs on semiconductors (including cellphones and parts) would go into effect with an important and ill-defined exception: In the Oval Office alongside Apple CEO Tim Cook, who presented Trump with a gift of 24-karat gold and glass engraved with his name, Trump said that Apple would not have to pay the tariff due to its allegedly forthcoming U.S. investments. Trump further suggested that making a commitment to build in the U.S. would exempt companies from the tariff, and that somehow they would be charged in the future if they didn’t in fact build in the U.S.
In response, Melinda St. Louis, Global Trade Watch director at Public Citizen, stated:
“Will a tacky gift and a pinky promise to Trump be the ticket for favored CEOs to avoid tariffs?
“And will Trump and his family personally benefit from this ill-defined exemption, given his recently announced ‘Trump Mobile’ wireless service and ‘T1’ phone that will allegedly be made in America? ‘Just pay $100 now and the rest at an undefined time when (or if) the phone arrives.
“As Public Citizen and others have documented, Trump’s first-term tariff exemption process was so opaque and chaotic that it quickly overwhelmed government agencies and enabled a spoils system that rewarded the rich and well-connected. A revolving door of lobbyists, including former and future Trump administration officials, were able to secure lucrative tariff exceptions for their CEO clients through political pressure, informal meetings, and campaign contributions.
“Let the billionaire feeding frenzy begin.”