Tim Cook is clear, beyond possible speculation about special favors, that Trump’s tariffs will cause them to lose a disproportionate amount of money in terms of costs. In the quarterly call to present the corresponding fiscal results, the CEO of Apple indicated that the bitten apple company could face at least $900 million due to the exposed situation. Aware of what is coming, he also stated that assembly work will be done outside of China during the next quarter to “avoid fueling the trade war.” These were the announced results of the second fiscal quarter of 2025 .
Apple will lose millions of dollars due to Trump’s tariffs, according to Tim Cook.
Recall that at the beginning of March, the President of the United States announced the imposition of import tariffs on several countries around the world, especially China, with a 145% tariff. The current tariff does not apply to iPhones, Macs, or other computers. However, Tim Cook noted that there is a direct impact due to the tariff related to the International Emergency Economic Powers Act (IEEPA), which has a 20% rate.
There’s no way to estimate the impact from April to June due to the lack of knowledge of “future measures” regarding tariffs, so Tim Cook indicates that the cost would be $900 million. The Apple CEO declined to comment on whether there would be any price increases for its products despite being questioned. He encouraged his operations team, stating that they have done “an incredible job optimizing the supply chain.”
India and Vietnam confirmed as countries that will help avoid higher tariffs
After rumors swirling around India and Vietnam as potential manufacturing solutions to the tariff issue, Tim Cook confirmed he will avoid the highest tariffs imposed by China by importing products from other countries. In the June quarter, the majority of iPhones sold in the United States are expected to come from India, and Vietnam will cover everything from iPads and Macs to Apple Watches and AirPods.
India has long been a source of iPhone production, but this will undoubtedly increase, and production in Vietnam will be relied upon to meet demand for other products. Tim Cook stated that Apple will stay the course, managing “as they always have,” with its “thoughtful” decisions, making long-term investments, and focusing on innovation. There is confidence that they will continue “creating the best products and services,” as well as maintaining their ability to “innovate and enrich the lives of their users.”
No matter what’s coming in terms of tariffs, Apple knows how to stay active and, above all, how to minimize risks. There’s no doubt they have a great team behind them. Curiously, the details of Epic Games’ legal dispute, in which the judge in charge of the case ruled in favor of the company led by Tim Sweeney, were not discussed in depth.
