Apple is bracing for a significant rise in costs—approximately $900 million—for the April to June quarter due to U.S. tariffs on Chinese imports imposed under the Trump administration. The figure was disclosed during the company’s quarterly earnings call, where CEO Tim Cook addressed the financial impact of the evolving trade policies.
While the first quarter saw minimal effects, Apple expects a more substantial burden in the current quarter if no changes are made to existing tariffs. Cook added that future quarters could see even higher costs, depending on how trade relations between the U.S. and China develop.
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To minimize the damage, Apple has begun shifting production away from China. Most iPhones sold in the U.S. this quarter will be made in India, while iPads and Macs will be sourced from Vietnam. However, China will still supply Apple’s products for other global markets.
Further complicating matters, a 125% tariff was added in April to AppleCare and accessories, bringing the total tariff rate for those items to 145%. Despite these setbacks, Apple remains focused on strategic sourcing and long-term resilience.
