Apple (NASDAQ: AAPL) CEO Tim Cook on Wednesday presented President Donald Trump with a one-of-a-kind, U.S.-made glass plaque and walked away with an assurance that Apple's expanding "American Manufacturing Program" will spare the company from a looming 100% tariff on imported semiconductors and chips.
What Happened: Cook handed Trump a circular slab of Corning Gorilla Glass etched with the presidential seal and Cook's signature, mounted on a 24-karat-gold base fabricated in Utah. "It is a unique unit of one," Cook told reporters, noting that the piece was designed by a former Marine who now works for Apple.
During the Oval Office event, Cook said Apple will add $100 billion to its existing $500 billion domestic-investment pledge, bringing the total to $600 billion over four years. He added that 100% of iPhone and Apple Watch cover glass will soon be produced in Kentucky, expanding a Corning partnership first unveiled in 2021.
Trump used the ceremony to tout a proposed 100% tariff on foreign-made chips, but said, "The good news for companies like Apple is if you're building in the United States ... there will be no charge," he added. The White House warned that companies reneging on U.S. promises could face retroactive duties.
Why It Matters: "In terms of the longer-term issues, more than a year out, I would say tariffs are probably 20% of it," said Gene Munster, managing partner at Deepwater Asset Management, according to CNN. Cook told investors last week that tariffs already cost the company $800 million last quarter and may hit $1.1 billion in the September period.
Cook's latest offering to Trump follows earlier gift-diplomacy. As per CNN, Trump's final 2021 financial disclosure lists a $5,999 MacBook Pro from Apple's chief. In 2019, Cook secured more tariff carve-outs after what Trump called 'direct' chats, according to a CNBC report.