WSJ: Apple avoided semiconductor tariffs last year thanks to Intel chip deal

Skip to main content Intel in the U.S. is expected to make at least some upcoming Mac and iPhone chips for Apple.

That recent development may have been the key to a major tariff exemption on semiconductors Apple received almost a year ago. Robbie Whelan, reporting for The Wall Street Journal on Friday (Apple News link): Tim Cook was under pressure from the White House last summer when he fielded an unusual request. The Apple chief was in Washington, scrambling to persuade the Trump administration to abandon its plan to impose tariffs of 100% on all semiconductor imports, a move that would likely increase the cost of its most important products.

Apple eventually won an exemption after committing to invest hundreds of billions of dollars more in the U.S. In the course of their meetings with Cook, President Trump and Commerce Secretary Howard Lutnick also brought up another American company: the troubled chip maker Intel.

The report goes on to detail how the Trump administration essentially offered up an Intel investment as the key to tariff exemptions. Nearly a year later, Trump announced via Truth Social post that Apple would begin using Intel-made chips for some of its products, sending Intel shares to record trading highs. “I decided to help Intel because we need to design and build our Chips right here in America,” Trump wrote.

Apple plans to have Intel make chips for both Mac laptops and iPhones, according to a person familiar with the negotiations. The connection between the tariff talks and a potential deal between Apple and Intel has not been previously reported. Ultimately, Apple was never forced to raise prices on products due to import tariffs on semiconductors.

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