Apple Inc. iPhones assembled in China will not be subject to U.S. tariffs, according to a report Monday, but the tech giant may still get punished by rising trade tensions.

The New York Times reported that the Trump administration has told Apple Chief Executive Tim Cook that tariffs would not be placed on iPhones imported from China. The Times said Cook visited Trump at the White House last month to warn the president that imposing tariffs against Chinese goods could hurt Apple.