Boardroom

With the U.S.-China trade simmering as Trump begins his second term, Apple will be vulnerable to the proposed China tariffs and export restrictions of critical minerals. Since Apple makes majority of its products in China, it must deflect what otherwise would be amount to hundreds of millions of dollars in taxes. Although Apple has shifted production to India with the iPhone 15 (2022), Apple has yet to start fabrication in the U.S. With Trump proposing a 60% tariff on goods imported from China and a 20% levy on things made elsewhere, Apple will have to use every lever to contain costs, sustain demand, secure mineral inputs, and gain policy exemption. So, with so much at-stake, what will Apple do?

The “America First” agenda under President Trump’s second term, particularly its trade and tariff policies, will significantly impact China’s economy, trade dynamics, and geopolitical strategy. As China retaliates, corporate directors must stay informed and proactively safeguard their companies’ interests. Moreover, with the changing global landscape and supply chain strategies, companies should consider the intersection of natural security with ESG, Sustainability, and Climate.

With COP29 now concluded in Baku, Azerbaijan, corporate directors should consider the ramifications for their organizations, especially as they relate to the quickening pace of the global energy transition, worsening portfolio of climate risks, uncertainty on the future of U.S. climate policy, and growing pressure on private financing to bolster climate resilience and adaptation. Although many have called the latest COP a disappointment, the short- and medium-term consequences of the latest climate negotiations should be evaluated thoroughly.