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,

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

The administration is currently exempting electronic devices from tariffs on Chinese imports. That means Apple's business is spared, at least for now.