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American Focus > Blog > Tech and Science > Apple CEO Tim Cook says tariffs to add $900M in costs in Q3, but future uncertain
Tech and Science

Apple CEO Tim Cook says tariffs to add $900M in costs in Q3, but future uncertain

Last updated: May 1, 2025 10:15 pm
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Apple CEO Tim Cook says tariffs to add 0M in costs in Q3, but future uncertain
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Apple CEO Tim Cook addressed the impact of President Trump’s tariffs during the company’s second-quarter earnings call with investors. Cook stated that while Apple experienced only a “limited impact” from tariffs in the March quarter, the company was uncertain about the effects in the coming quarter. If the current trade policies remained unchanged, Apple estimated that tariffs would increase its costs by $900 million in Q3.

Investors were relieved by this news, with some describing it as a “pretty good outcome.” However, there were concerns about the uncertainty of future quarters due to the unpredictable nature of U.S. trade policy changes.

Cook emphasized that Apple’s estimate was contingent on the stability of global tariff rates, policies, and applications for the remainder of the quarter, as well as the absence of new tariffs. He cautioned against using this estimate to project future tariff impacts, citing “unique factors” that benefited the June quarter.

In a CNBC interview, Cook downplayed the impact of tariffs by highlighting Apple’s sourcing strategies, such as manufacturing half of its iPhones for the U.S. market in India and most other products in Vietnam. When pressed for more information about future quarters, Cook expressed hesitancy in predicting the impact of tariffs, stating, “I don’t want to predict the future.”

Despite the uncertainties, Cook assured investors that Apple would continue to make thoughtful and deliberate decisions, focus on long-term investments, prioritize innovation, and manage the business in a way that distinguishes Apple from its competitors. Cook reaffirmed his confidence in the company’s ability to produce top-quality products and services, innovate, and enhance users’ lives while upholding Apple’s core values.

See also  Former Google CEO Eric Schmidt Buys L.A.’s Spelling Manor For $110 Million

Looking ahead, Apple remains committed to navigating the challenges of changing trade policies and market dynamics while staying true to its mission of delivering excellence in technology and customer experience. The company’s dedication to innovation and long-term success will continue to drive its business strategies and decision-making processes.

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