WSJ Tech News Briefing: Episode Summary Episode: TNB Tech Minute: Trump Threatens New Tariffs on iPhones
Release Date: May 23, 2025
Host: Julie Chang, The Wall Street Journal

1. President Trump's Proposal to Impose New Tariffs on iPhones and Other Smartphones

In this episode, Host Julie Chang discusses a significant development in U.S. trade policy that could have wide-reaching implications for the technology sector. President Donald Trump has announced intentions to impose new tariffs on iPhones and other smartphones manufactured overseas.

• Tariff Details: According to Trump’s Truth Social post on Friday, he stated, “I expect iPhones sold in the US to be manufactured here in our great country, or Apple will have to pay a levy of at least 25%” (00:45). This levy targets devices not produced domestically, aiming to encourage local manufacturing.

• Implementation Timeline: The tariffs are slated to be imposed by late June, as mentioned by Chang (01:10).

• Market Impact: Following the announcement, Apple's shares experienced a decline of 3% on the day, reflecting investor concerns over the potential financial burden and operational disruptions.

• Company Response: When queried about the tariffs, an Apple spokesperson declined to comment, indicating a cautious approach as the situation evolves (01:35).

2. Apple CEO Tim Cook’s Engagement with Texas Legislation on Online Child Safety

The podcast delves into Apple's strategic maneuvers in response to proposed legislation in Texas aimed at enhancing online safety for children.

• Tim Cook’s Intervention: Last week, Apple CEO Tim Cook contacted Texas Governor Greg Abbott to advocate for alterations to an online child safety bill or to urge its veto. Chang reports, “Apple wants to strengthen online safety for children, but the Texas bill threatens user privacy” (02:00). This reflects Apple's balancing act between supporting child safety initiatives and safeguarding user privacy.

• Legislative Details: The Texas bill mandates that app stores verify the ages of device users, a move supported by both Apple and Google, who are actively contesting the legislation.

• Governor's Stance: Governor Abbott has yet to make a definitive statement on whether he will sign the bill. A spokesperson emphasized that “safety and online privacy for Texas children remains a top priority” (02:30).

• Apple’s Concerns: An Apple spokesperson articulated that while the company is committed to enhancing online safety, “the Texas bill threatens user privacy,” highlighting the potential conflicts between regulatory measures and privacy standards (02:50).

3. GOP-Led Senate Votes to Abolish California’s Electric Vehicle Mandate

Another pivotal topic covered is the Senate’s recent decision to nullify California's ambitious electric vehicle (EV) mandate.

• Senate Vote: The GOP-led Senate voted to terminate the mandate that would have banned the sale of new gas-powered cars by 2035 in California. Chang notes, “the vote effectively kills the country’s biggest driver of EV investment” (03:15).

• Industry Reaction: U.S. carmakers and auto dealers have expressed concerns, arguing that maintaining the mandate could “cripple the industry by forcing sales of cars the public doesn't want” (03:40). This perspective underscores the tension between environmental objectives and market demand.

• California’s Response: In retaliation, California officials have vowed to sue the Trump administration, labeling the Senate's vote as “an attack on the state's fight against pollution” (04:05). This legal battle signifies the ongoing conflict between federal and state policies on environmental issues.

• Current Status: The bill has now been forwarded to President Trump for his signature, marking a critical juncture in the legislative process (04:25).

4. Closing Remarks

Julie Chang concludes the episode with a brief note informing listeners that the podcast will take a short break on Monday for Memorial Day in the United States but will resume with new content the following day (04:45).

Key Takeaways:

• Trade Policies Impacting Tech: President Trump's proposed tariffs on iPhones could reshape the smartphone market and significantly affect Apple's financials and manufacturing strategies.

• Regulatory Challenges for Tech Companies: Apple's proactive engagement with Texas legislation highlights the complex interplay between tech companies and regulatory environments, particularly concerning user privacy and safety.

• Environmental Legislation and the Auto Industry: The Senate's move to eliminate California's EV mandate reflects broader debates over environmental policy, industry sustainability, and federal-state relations.

This episode of WSJ Tech News Briefing provides a comprehensive overview of current events shaping the technology landscape, emphasizing the intricate balance between innovation, regulation, and market dynamics.

Timestamps:

• 00:45 - President Trump's announcement on tariffs
• 01:10 - Timeline for tariff implementation
• 01:35 - Apple shares reaction
• 02:00 - Tim Cook’s call to Governor Abbott
• 02:30 - Governor Abbott’s stance on the bill
• 02:50 - Apple’s concerns regarding the bill
• 03:15 - Senate vote on California's EV mandate
• 03:40 - Industry reaction to the Senate vote
• 04:05 - California's response to the Senate decision
• 04:25 - Bill forwarded to President Trump
• 04:45 - Closing remarks on Memorial Day break

Note: Timestamps correspond to the podcast transcript and are provided for reference.