Tim Cook Warns Apple May Incur $900 Million in Tariff Costs This Quarter
Cupertino, CA — May 1, 2025 — Apple CEO Tim Cook revealed on Thursday that the tech giant may face $900 million in additional costs during the third quarter due to U.S. trade tariffs, though he cautioned that the future financial impact remains unpredictable.
Speaking during Apple’s Q2 earnings call, Cook said the March quarter saw only a “limited impact” from tariffs. But with the current trade landscape changing rapidly under President Trump’s administration, he hesitated to offer projections for future quarters.
“If nothing changes, our current estimate is about $900 million in added costs for Q3,” Cook noted, emphasizing that the figure assumes no new tariffs or changes to existing policies for the remainder of the quarter.
Investors Cautiously Optimistic
Investors reacted with some relief, calling the projected impact relatively modest given broader fears. Still, concerns lingered over how additional policy shifts could affect future performance.
Cook reminded analysts that several unique factors are helping cushion Q3, making it an unreliable benchmark for forecasting.
Diversified Production Mitigates Risk
In an interview with CNBC, Cook downplayed the tariff threat, highlighting Apple’s diversified supply chain. Roughly half of iPhones sold in the U.S. are now manufactured in India, while Vietnam produces a significant share of the company’s other hardware.
Asked about production strategy beyond June, Cook avoided specifics but reaffirmed that Apple is actively involved in tariff discussions. It’s worth noting that Apple iPhones were spared from earlier trade restrictions following Cook’s direct engagement with President Trump.
Steady Leadership Amid Uncertainty
Despite geopolitical challenges, Cook assured stakeholders that Apple will continue its deliberate, long-term approach to business.
“We remain confident—in our products, in our innovation, and in the values that distinguish Apple from the rest,” he stated.
Apple’s measured tone comes at a time when multiple tech giants are reassessing their global strategies due to shifting trade policies, manufacturing realignments, and rising production costs.
With Cook staying tight-lipped about future tariff exposure, all eyes are now on whether new trade barriers will be introduced before the quarter ends.
