The US and China are closer than ever to inking a partial trade deal, and any progress toward resolving the lengthy conflict is good news for Apple. The tech company currently pays tariffs on several of its products, and Tim Cook was optimistic that the two nations would end the trade war soon.
"My view is very positive in terms of how things are going. And that positive view is obviously factored into our guidance as well. The tone, I think, has changed significantly," the chief executive said.
Yet recent updates signal a truce may face even more hurdles. Chinese government officials told Bloomberg in October they doubt a long-term deal will come to fruition, as the nation isn't willing to budge on key concessions requested by the US, including data sharing and communications.
Should the negotiations sour, Apple may be forced to adjust its guidance lower. Cook has been quietly trying to influence the situation through meetings with the president, and Trump told reporters in August that Cook made a convincing argument that the trade war was helping non-US competitors.
Apple asked the White House for additional tariff exemptions Friday, Bloomberg reported, just two days after its earnings call. The waivers would negate 15% duties on iPhone parts, AirPods, Apple Watches, and other products if approved.
Though Apple maintains a hopeful outlook for the US-China tensions, the trade war remains a source of tremendous uncertainty for the tech company and the global economy alike.
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