During a conference call about the second-quarter financial results, Apple’s CEO, Tim Cook, shared new details about the effects of U.S. tariffs. According to the company’s estimates, the current global tariff policies will cost Apple at least $900 million in this quarter, unless there are further changes or new tariffs in the coming months.
Cook clarified that this estimate is based on current conditions and some unique factors of this quarter, urging not to use it as a basis for future predictions. However, this is the clearest statement Apple has made so far regarding the direct impact of the tariffs.
Production Moves to Other Countries to Limit Damage
Cook explained that in the June quarter, most of the iPhones sold in the U.S. will be produced in India, while iPads, Macs, Apple Watches, and AirPods will mainly come from Vietnam. For sales outside the U.S., China will remain the main production base. This is clearly an attempt by Apple to diversify its supply chain, in order to reduce direct exposure to higher tariffs.
A significant portion of the expected impact comes from a 20% tariff related to the IEEPA measure from February, which affects imports to the U.S. of products made in China. Additionally, there is an extra 125% tariff on some Apple accessories and AppleCare services, making the total for these items up to 145% for the Chinese market.
Major Apple Products Currently Exempt from Global Tariffs
Cook also mentioned that most of Apple’s main products – including iPhone, Mac, iPad, Apple Watch, and Vision Pro – are currently not affected by the reciprocal tariffs announced in April. However, the U.S. Department of Commerce has started an investigation, which could lead to new restrictions on semiconductor imports and devices containing them. This suggests that future tariff exposure may increase.
Tim Cook avoided commenting on the outlook for the coming quarters, but emphasized that Apple will continue to manage the business “with thoughtful and deliberate decisions,” as always. He also reiterated that the expected $900 million impact is “manageable,” although the situation could worsen if tariffs increase or extend to other product categories.
