In a significant victory for Apple and its competitors, President Trump on Wednesday announced plans to impose tariffs of about 100% on all imports of semiconductors, but he also carved out exemptions for tech companies that pledge to manufacture in the United States.

That’s not to say tariffs won’t hurt; CEO Tim Cook said tariffs will likely cost the company $1.1 billion this quarter. But analysts say Apple has bigger concerns, such as its future product strategy and approach to artificial intelligence, a burgeoning field that the tech behemoth is perceived to be behind in.