Trump's Tariffs Add $900 Million to Apple's Operating Costs

TEMPO.CO, Jakarta - Apple revealed that President United States Donald Trump's import tariff policy will add an extra $900 million to their operational costs in the April to June quarter of 2025. This information came directly from Apple CEO Tim Cook's quarterly earnings call.

Cook explained that this estimate was made assuming the current global tariff policy remains in effect until the end of the quarter and no additional tariffs are imposed.

"However, for some color, assuming the current global tariff rates, policies, and applications do not change for the balance of the quarter, and no new tariffs are added, we estimate the impact to add $900 million to our costs," said Cook, quoted from the 9to5Mac report on Friday, May 2, 2025.

Apple stated that the impact of tariffs on their business in the previous quarter, from January to March, was still limited due to supply chain optimization and inventory management. However, the company faces uncertainty in the next quarter due to potential sudden policy changes.

"For the June quarter, currently we are not able to precisely estimate the impact of tariffs as we are uncertain of potential future actions prior to the end of the quarter," he said.

Cook also emphasized that the estimated figures cannot be used as a reference for future quarterly projections because this quarter has "unique factors."

To minimize the burden of tariffs, Apple has moved a majority of its production for the U.S. market from China to other countries. For the June quarter, Cook said Apple estimates that most iPhones sold in the U.S. will come from India, and Vietnam will be the country of origin for almost all iPad, Mac, Apple Watch, and AirPods products.

Meanwhile, China will remain the main production base for Apple products sold outside the United States. However, for products imported to the U.S. from China in February, Apple remained subject to a 20 percent tariff, and an additional 125 percent tariff for certain product categories, such as AppleCare and accessories, which increased the tariff to at least 145 percent.

Currently, most Apple products, such as iPhone, Mac, iPad, Apple Watch, and Vision Pro, are still not subject to the standard global reciprocal tariff announced in April 2025. The U.S. government is investigating the import of semiconductors and related devices, which may affect the tariff structure in the future.

Cook emphasized that they will continue to manage the company with a long-term approach. He said the company will run as usual, with mature and thoughtful decisions, focusing on long-term investment, and dedication to innovation and the opportunities it creates.

Editor's Choice: Starlink Offers Free Internet Service for a Year

Click here to get the latest news updates from Tempo on Google News

Trump-Carney Meeting Looms: What's the Real Issue?

23 jam lalu

US, Ukraine Finalize Minerals Deal After Trump Push

1 hari lalu

Top 10 Places to Visit in Chongqing, China's Mountain City

1 hari lalu

Today's Top 3 News: Bank Indonesia Withdraws Four Banknote Denominations

1 hari lalu

iPhone 17 Pro Won't Feature Anti-Reflective Screen Due to Production Issues

1 hari lalu

Indonesian Company Sets Record for Galvanized Steel Exports to US

1 hari lalu

Trump's Tariff Threatens Indonesia's Labor-Intensive Industries, 1.2 Million Jobs at Risk

2 hari lalu

Trump's First 100 Days: Marked by Chaos and Controversy

2 hari lalu

Minister: Apple Investments in Indonesia Unstirred by Looming Trade War

2 hari lalu

Indonesia's Food Agency Seeks Garlic Imports to Stabilize Market Prices

2 hari lalu