President-elect Donald Trump has proposed imposing wide-ranging import tariffs on goods from China, where Apple manufactures the majority of its products.
However, it is worth noting that Apple's stock is still hitting record highs, despite concerns about the impact of these taxes. So what is keeping Apple's stock growing strongly in this context?
Deepwater Asset Management, an asset management firm where Gene Munster is a managing partner, has made its predictions for the market in 2025. One of these predictions involves Apple and Tesla, two major US technology companies. The prediction reveals how Wall Street is viewing Trump’s proposed taxes and their impact on US technology companies.
According to Deepwater, Apple and Tesla are likely to be exempt from tariffs if Trump implements his proposed tariffs on goods from China. They argue that while tariffs would likely increase for many other manufacturers, Apple and Tesla would be exempt from the high tariffs. This stems from Trump not wanting Tesla to lose out to BYD, a Chinese electric vehicle maker, or Apple to lose out to Samsung, a major competitor in consumer electronics.
Deepwater’s prediction is in line with what other investors and analysts are expecting from the incoming Trump administration. While new taxes are likely to be imposed, Apple appears to be avoiding any new financial burdens, suggesting investors remain confident in Apple’s ability to weather the storm.
The first Trump administration offered a hint of what Apple could face in the next four years. In 2019, the then-president had dinner with Apple CEO Tim Cook, during which he said Cook made a “very compelling case” for Apple to be exempted from tariffs.
Tim Cook reportedly argued that Apple would have trouble paying tariffs on products assembled in China, as many of its competitors do not pay the same tariffs. In particular, Samsung, a major Apple competitor, has much of its manufacturing in South Korea, and therefore does not face the same tariffs.
The same reasoning underlies Deepwater’s belief that Apple will benefit from another tariff break in the near future. While Trump certainly wants Apple to move more manufacturing out of China, he also doesn’t want to hurt a U.S.-based company that faces stiff competition from foreign rivals.
