Business
US-POLITICS-TRUMP-technology-Apple
President-elect Donald Trump and Apple CEO Tim Cook during a 2019 tour of a facility where Apple’s Mac Pros are assembled (Mandel Ngan/Getty Images)

What the Trump tariffs could mean for Apple

Only about 10% of iPhones are produced outside of China. Thankfully for Tim Cook, this isn’t his first rodeo.

President-elect Donald Trump said yesterday he would impose an additional 10% tariff on goods coming in from China. Ostensibly that’s bad news for Apple, which makes the vast majority of its products in China. As with everything Trump-related, there’s a lot of uncertainty about what will actually happen.

Here are some points to consider:

  • Thanks to CEO Tim Cook’s relatively amicable relationship with Trump, Apple was exempted from many of the China tariffs during Trump’s first presidency. It’s possible Apple could use that relationship to get an exemption once again — but this time, there’s a long line of other tech CEOs who are doing the same.

  • Apple currently has some US projects in the works, including an Arizona chip plant and a North Carolina campus that might soften Trump’s stance on the company’s China manufacturing. Cook famously — and smartly — said nothing when Trump incorrectly took credit for helping open a new Apple facility in the US. (It had been open for years.)

  • Last time around, Apple had argued that it couldn’t make its Apple Watch outside of China and meet American demand for the product. Such an argument might hold less weight now that the company has had a whole other presidency to figure ways out of China production.

  • Apple has moved some of its China production to India in a bid to lessen its reliance on China and, by extension, its tariffs. Despite that, only about 10% of iPhones are produced outside of China.

  • If Apple doesn’t secure another exemption, the impact on its gross margins could be significant, analysts say.

  • China is also an important market for Apple goods. If China retaliates against the tariffs with its own, that could also be bad news for Apple, which gets about 17% of its sales there.

  • So far the market doesn’t seem to be too worried about Apple. Its stock is currently up about 0.5% today.

More Business

See all Business
business

Starbucks issues apology after viral “Bearista” cup meltdown

Holiday cheer turned into chaos this week for Starbucks after the coffee giant’s new “Bearista” holiday cup sent fans into a frenzy. 

Dropped alongside its 2025 holiday menu, the $30 beanie-wearing glass bear tumbler sparked long lines, sellouts, and even in-store scuffles before Starbucks stepped in with an apology.

“The excitement for our merchandise exceeded even our biggest expectations,” the company said in a statement to People. “Despite shipping more Bearista cups to our coffeehouses than almost any other item this holiday season, the Bearista cup and some other items sold out fast.”

Within hours of launch, frustrated fans flooded Starbucks’ social media pages and even store hotlines. Some customers waited in line before dawn and others said their stores received only a handful of cups. In one Houston location, the craze even turned physical, with police reportedly called to break up a brawl. Meanwhile, the cup is already reselling on sites like eBay, with listings topping $600.

“We understand many customers were excited about the Bearista cup and apologize for the disappointment this may have caused,” Starbucks said. While in-store customers may be upset, investors seem happy about the viral hit, as the stock has risen over 3% on Friday.

If you’re still hoping for a Bearista at market price, that may not be on order: the chain didn’t disclose how many cups were made or whether a restock is planned.

business

Target tells workers to smile, wave, and greet shoppers if they come within 10 feet of them

Target just rolled out a new rule for store employees: smile, make eye contact, and greet or wave when a shopper comes within 10 feet — and if they get closer, within four feet, ask whether they need help or how their day is going, according to a new Bloomberg report.

Dubbed the 10-4 program internally, the rule mirrors rival Walmarts own 10-foot policy, formalizing behavior Target had previously only encouraged.

business

Monster surges on energy drink buzz, while Celsius sinks on distribution concerns

Shares of Monster Beverage climbed 5% after the bell on Thursday, and held most of those gains into early trading on Friday, following strong Q3 results.

The energy drink giant topped market expectations, with quarterly sales up 17% year over year to $2.2 billion and adjusted net profits growing 41% to $524.5 million — 11% ahead of Wall Street’s estimates. In the report, Monster highlighted its zero-sugar line and new product launches, with a stack of novel flavors already released this year, as bright spots.

During a call with analysts, Chief Executive Hilton Schlosberg said that the global energy drink category “remains healthy with robust growth,” The Wall Street Journal reported, adding that demand for more affordable caffeinated drinks is rising as coffee has become “really expensive.”

Meanwhile, rival beverage business Celsius saw shares fall as much as 23% on its Q3 results yesterday — despite beating expectations, with revenue jumping 173% — largely due to concerns about a change in the company’s distribution channel, as its newly acquired Alani Nu brand joins the PepsiCo distribution network.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.