Apple avoided US chip tariffs thanks to a deal with Intel

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Apple escaped the threatened 100 percent tariffs on imported semiconductors – and according to a new report, a contract with Intel was the crucial factor. The connection between the tariff negotiations at the White House and the subsequent chip agreement had not been publicly disclosed until now. It demonstrates how closely Apple's supply chain has become intertwined with US politics.

Last summer, the Trump administration planned to impose 100 percent tariffs on all semiconductor imports—a move that would have significantly increased the price of Apple's most important products. Apple ultimately secured an exemption after pledging to invest hundreds of billions more dollars in the US. A report in the Wall Street Journal now links this tariff exemption for the first time to the recently revealed chip agreement between Apple and Intel. What initially appeared to be two separate developments, according to the report, turns out to be part of the same negotiation.

What the report reveals

According to the report, Tim Cook was under pressure from the White House in the summer of 2025 when he tried to dissuade the administration from imposing planned semiconductor tariffs. During the negotiations, President Trump and Commerce Secretary Howard Lutnick reportedly brought another US company into the equation: the struggling chip manufacturer Intel. Apple ultimately received the tariff exemption after the company pledged billions in additional investments in the US – a course Apple had already embarked upon by expanding its domestic chip supply chain.

Nearly a year later, Trump announced via his TruthSocial network that Apple would be using Intel chips for some of its products – news that sent Intel's stock soaring to record highs. According to an insider familiar with the negotiations, Apple intends to have Intel manufacture chips for both Mac notebooks and iPhones. The connection between the tariff talks at the time and this deal was unknown until this report (via Wall Street Journal).

What is officially confirmed – and what is not

Despite the wealth of detail, one important caveat remains: Neither Apple nor Intel has officially confirmed the chip agreement. Intel declined to comment on a "possible Apple-Intel agreement," and Apple did not respond to press inquiries. Furthermore, Trump's statement that Apple would "design and build" the chips jointly with Intel goes beyond what the report covers: The report refers to Intel as a mere contract manufacturer for Apple's own chip designs, not to joint development. The agreement is also considered preliminary, having been negotiated over more than twelve months.

This classification fits the existing picture: Intel is likely to initially manufacture older and less expensive processors, while the most powerful Apple chips will continue to come from TSMC. Apple will remain the developer of its ARM chips in any case – a return to the earlier Intel era in Macs is explicitly not implied.

What the customs exemption means for German buyers

For customers in Germany, Austria, and Switzerland, avoiding tariff increases is only half the story. While Apple never had to raise prices due to semiconductor tariffs, the devices still became more expensive in 2026. This is due to the global shortage of memory chips, which Apple itself cites as the reason for the recent price increases for Macs, iPads, and the Vision Pro. In euros, this was immediately reflected in the price tags, while the iPhone, Apple Watch, and AirPods initially remained unaffected.

US tariff policy and European retail prices thus follow different logics: one cost component was averted politically, while the other still arrives via the global component market. Ultimately, for purchasing decisions in the DACH region (Germany, Austria, and Switzerland), the storage crisis matters more than the averted US tariffs.

Apple in the service of US industrial policy

This case demonstrates how much Apple has become a tool of American industrial policy. The tariff exemption wasn't granted solely in exchange for a promise of increased US investment, but apparently also as part of a package deal that included propping up a national problem child: Intel, in which the US government itself holds a stake. For Washington, the deal serves two purposes – bringing chip manufacturing back to the US and rescuing a struggling flagship company.

For Apple, the price of this exception is closer adherence to political directives. How robust Intel's manufacturing will prove to be technically remains to be seen; however, it is already clear that Apple's supply chain decisions are increasingly based not only on cost and quality, but also on the interests of the White House. (Image: Shutterstock / William Potter)