Apple is squarely in the middle of the U.S.-China trade war—but it has a plan to avoid a sharp increase in the cost of iPhones. It might not be to the taste of President Donald Trump. The Trump administration has temporarily exempted smartphones,

In a surprise announcement extremely late on Friday night, President Trump has exempted smart phones, computers, and chips from the so-called reciprocal tariffs, sparing Apple and others billions in import fees.

Apple’s CEO Tim Cook spoke to Commerce Secretary Howard Lutnick last week about the potential impact of the tariffs on iPhone prices.