Analyst: Trump to End Apple's China Tariffs to Prevent Company from 'Losing Out to Samsung'

President-elect Donald Trump has proposed massive tariffs on China, where Apple manufactures most of its products. Yet Apple shares are hitting all-time highs. Here's why.

Apple's Foreign Competition Serves as Safeguard Against New Trump Tariffs

Deepwater Asset Management, where Jean Munster is a managing partner, shared her market forecasts for 2025.

One of those forecasts involves Apple (and Tesla), giving insight into how Wall Street views the looming Trump tariffs and their impact on U.S. tech companies.

Deepwater predicts:

Apple and Tesla Will Get Tariff Exemptions (If Trump Implements his proposed tariffs on China) – Make no mistake, tariffs will be higher for many manufacturers, but Apple and Tesla will escape high tariffs – Trump doesn't want Tesla to lose to BYD and Apple to lose to Samsung.

This is in line with what other investors and analysts seem to expect from the new Trump administration.

Despite the high likelihood of new, comprehensive tariffs in the future, Apple looks set to largely escape any new financial burden.

Trump's first administration provides hints for what's coming

In some ways, the first Trump administration is setting many precedents for what Apple could face over the next four years.

In 2019, then-President Trump met with Apple CEO Tim Cook for dinner. During the meal, according to Trump himself, Cook “made a very compelling case” for Apple to receive a tariff exemption.

Cook reportedly argued that Apple would have a hard time paying tariffs on its products assembled in China because many of its competitors don't have to pay the same level of tariffs, particularly Samsung, which has most of its manufacturing in South Korea.

Top comment from JustNeedItForDev

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A terrible idea to give megacorporations a break while smaller competitors have to pay the price (especially in the electric vehicle market). Megacorporations will be best placed to change their business models to cope with the tariffs, smaller ones won't have as much flexibility.

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The same reasoning underlies Deepwater's belief that Apple would benefit from the tariffs being lifted again this time around.

While Trump undoubtedly wants Apple to move much of its production out of China, he also doesn't want to hurt the American company, which faces stiff competition from overseas players.

With Trump's inauguration approaching, it's perhaps no surprise that Cook just had lunch again with the new US leader.

Do you think the new tariffs will affect Apple? Let us know in the comments.