The tariff Apple must pay to import iPhones and other products assembled in China will be cut in half — down to 10%. U.S. President Donald Trump announced the change after a meeting with China’s President Xi Jinping on Thursday.
It’s a change that could save Apple billions of dollars.
Trump cuts tariff on iPhone imports to 10%
Starting shortly after his election, Trump imposed tariffs on Apple products assembled in China, India and elsewhere and then brought into the United States. The import tax was 20% on devices coming from China — a move intended to punish China for allowing fentanyl precursor drugs to be shipped to the United States.
Apple has been paying the cost of the import tax, with the cost totaling about $1 billion each quarter.
On Thursday, Trump told reporters that Xi promised to “very hard to stop the flow” of fentanyl-related chemicals, according to Reuters. In response, he cut the tariffs to 10%.
In 2023, about 75,000 Americans died after overdosing on synthetic opioids (primarily fentanyl). U.S. authorities view China as a principal source of fentanyl precursor chemicals.
Good news on rare earths, too
At the Trump/Xi meeting, the Chinese president also agreed to halt the export limitations imposed on rare earths earlier this month. China is by far the dominant global source of rare earths, both in mining and processing.
Rare earths are needed for a variety of components used in iPhones, Macs, iPads, and more. They’re part of the strongest permanent magnets known for making headphones and MagSafe. Plus, they go into LCD screens.
And there’s more good news coming out of the meeting between the leaders of the U.S. and China.
“Mr. Trump and Mr. Xi agreed to a one-year truce, extending a pause they had put in place after tit-for-tat escalations drove up tariffs on each other’s imports to more than 100 percent,” The New York Times reported.
The ongoing trade war between the countries has caused uncertainties for American companies, including Apple. They couldn’t know what tariffs or export controls they’d be facing on any given day.
