Apple is squarely in the middle of the U.S.-China trade war—but it has a plan to avoid a sharp increase in the cost of iPhones. It might not be to the taste of President Donald Trump. The Trump administration has temporarily exempted smartphones,

Donald Trump ’s 125% tariffs on goods produced in China threatened to upend its supply chain as seriously as the Covid snarls did five years ago. On Friday night, the US president handed Apple a major victory, exempting many popular consumer electronics. That includes iPhones, iPads, Macs, Apple Watches and AirTags.

In a surprise announcement extremely late on Friday night, President Trump has exempted smart phones, computers, and chips from the so-called reciprocal tariffs, sparing Apple and others billions in import fees.