“They do these small grant programs as outreach to local organizations and local communities and they’re generally supposed to reflect values of the United States and the friendship between the countries,” he said. “Sometimes they’re about democracy, in this case they’re about diversity. But they have nothing to do with USAID.”
One of the main reasons that Apple has had wiggle room to hold the line on its current iPhone pricing is because the company continues to reap huge profit margins from the revenue generated by subscriptions and other services tied to its product, said Forrester Research analyst Dipanjan Chatterjee. That division, which collected $96 billion in revenue during Apple’s last fiscal year, remains untouched by Trump’s tariffs.“Apple can absorb some of the tariff-induced cost increases without significant financial impact, at least in the short term,” Chatterjee said.
But now Apple is facing a significant decline in its service revenue after a federal judge recentlyprohibiting it from collecting commissions on transactions within iPhone apps that are processed on other payment systems other than its own. Unless Apple prevails in an appeal, the decision could cost the company billions of dollars annually.Apple tried to appease Trump in February
to spend $500 billion and hire 20,000 people in the U.S. through 2028, but none of it was tied to making an iPhone domestically. Instead, Apple pledged to fund a Houston data center for computer servers powering— a technology the company is expanding into as part of an industrywide craze.
U.S. Commerce Secretary Howard Lutnick also predicted tariffs would force a manufacturing shift during an April 6 appearance on a
. “The army of millions and millions of human beings screwing in little screws to make iPhones, that kind of thing is going to come to America,” Lutnick said.A woman sits on speakers playing music during a Red Devils bus exhibition in La Chorrera, Panama, Sunday, June 30, 2024. (AP Photo/Matias Delacroix)
The driver of a Red Devil tourist bus calls for customers along the Amador Causeway in Panama City, Sunday, Sept. 15, 2024. The Red Devils are former U.S. school buses once used in the Panama Canal Zone and later as public transport or adapted for private and cultural use. (AP Photo/Matias Delacroix)The driver of a Red Devil tourist bus calls for customers along the Amador Causeway in Panama City, Sunday, Sept. 15, 2024. The Red Devils are former U.S. school buses once used in the Panama Canal Zone and later as public transport or adapted for private and cultural use. (AP Photo/Matias Delacroix)
A waitress serves patrons inside a Red Devil restaurant in Portobelo, Panama, Saturday, May 3, 2025. (AP Photo/Matias Delacroix)A waitress serves patrons inside a Red Devil restaurant in Portobelo, Panama, Saturday, May 3, 2025. (AP Photo/Matias Delacroix)