Tim Cook, Apple CEO, was long one of the few Silicon Valley executives who found common ground with Donald Trump during his first term as president. But that alliance is rapidly unraveling since Trump's reelection, according to The New York Times.
Cook reportedly refused to join Trump on his recent trip to the Middle East, sources said, angering the president. Trump has since publicly criticized Cook for moving production to India and threatened to impose a 25% tariff on all iPhones made outside the U.S. This came as a surprise to Apple, which recently had a 145% tariff on iPhones made in China waived.
Trump once jokingly referred to Cook as "Tim Apple," but now the Apple CEO has become a target of criticism. Experts believe Cook's public friendship with Trump has played against the company, making it more vulnerable to political decisions.
Trump's new tariff threat comes after reports that Foxconn, a key Apple partner, is investing $1.5 billion in manufacturing in India, part of Apple's strategy to reduce its reliance on China. But Trump wants iPhones made in the US, and the new tariffs could seriously impact Apple's supply chain.
Apple is also facing other problems: a court defeat over the App Store, a delayed launch of the updated Siri, and a failed launch of the Vision Pro headset. In addition, it was recently reported that former Apple chief designer Jony Ive has joined OpenAI to work on a potential iPhone competitor.
Despite all the challenges, Apple's market value has grown by more than $2.5 trillion under Cook's leadership. But now his ability to balance politics and business is under threat, and the company's future is under pressure from a new trade war.