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Apple (AAPL), CEO Tim Cook stated that the Trump administration’s current tariffs will cost Apple approximately $900,000,000 in the current fiscal quarter that runs until June.
Cook stated that the majority of iPhones in the U.S. will be sold from India rather than China. The iPad, Mac, Apple Watch and other products will mostly come from Vietnam.
Apple’s comments are a response to concerns that trade tensions could hurt the company, as Apple produced 90% of its products in China until recently. Cook noted that most Apple products were exempt from President Trump’s 125% “reciprocal” tariffs on Chinese imports, but still subject to the 20% import tax imposed earlier this year by the White House to combat fentanyl traficking.
Cook warned that Apple’s performance could be affected by tariffs, as the company was “uncertain about potential future actions” that the administration could take. Trump has said in trade negotiations that he believes tariffs against China will “come down substantially”, but not go to zero.
Apple reported fiscal second quarter revenue and earnings that exceeded analysts’ predictions, with higher than expected iPhone sales.
Apple shares fell 4% during extended trading. The stock had fallen 15% by the close of Thursday for 2025.
