The US Supreme Court announced on Friday that the majority of the import tariffs imposed by the Trump administration last year were unlawful. Trump’s reaction to this development now puts Apple in a more difficult situation than it was previously.
While Apple’s lobbying had led to nearly all its products being exempted from the earlier tariffs, Trump has introduced new ones that will once again include them.
### A Brief Summary
Last year featured a tariff narrative that seemed almost fictional. It began on February 1 when Trump enacted sweeping 10% tariffs on all goods brought in from China, in addition to the product-specific tariffs already established. This encompassed most of Apple’s offerings, resulting in either the company or its customers dealing with billions of dollars annually in extra expenses.
In the following two months, there was a swift escalation of reciprocal tariffs between the US and China, culminating in an astonishing peak rate of 145%. Following advocacy from Apple CEO Tim Cook, Trump subsequently exempted several product categories that encompassed all of the company’s items. Negotiations between the US and China eventually led to a reduction of the additional tariff rate down to 10%.
Although this seemed to wrap up the narrative from Apple’s standpoint, the situation has now shifted.
### Supreme Court Overturns Tariffs
Trump had asserted that the International Emergency Economic Powers Act granted him the authority to impose tariffs without congressional consent. Several major corporations contested this and took the case to court.
On Friday, the U.S. Supreme Court decided that this law did not empower Trump to impose new taxes, rendering the tariffs illegal.
### Apple Impacted by New Tariffs
Nonetheless, the White House remains persistent. Just a day following the ruling, Trump referenced an alternative statute claiming it provides him with the authority to impose tariffs. He declared a blanket 10% tariff on all imports from every country, and later that same day stated that he would be raising these to 15%.
Since the latest announcement pertains to nearly all product categories, it will once again affect Apple products.
### 9to5Mac’s Perspective
This issue is not likely to remain permanent. Apple will once more advocate for its product categories to be exempt, and companies are likely to contest the legal foundation of Trump’s asserted new powers.
However, it will still generate unwanted uncertainty for US firms like Apple that have their products produced abroad. Once again, they will be unaware of their actual manufacturing costs until the matter is settled at an indeterminate future date.