Apple could face $900 million hit if Trump moves ahead with tariff plan
Cook, however, clarified that the estimate reflects current conditions and shouldn’t be used to project future quarters.
Tim Cook is bracing for the worst as Trump’s tariffs could come back to bite Apple.
The iPhone maker’s chief warned the company could take a hit of up to $900 million in added costs this quarter alone from the planned US tariffs on foreign imports.
“We estimate the impact to add $900 million to our costs,” Cook said Thursday during an earnings call.
The planned U.S. tariffs on foreign imports come at a precarious moment for Apple, which is already grappling with slumping sales in China and fresh legal setbacks at home.
Cook, however, clarified that the estimate reflects current conditions and shouldn’t be used to project future quarters.
“There are certain unique factors that benefit the June quarter,” he added.
China sales fall short
Cook had earlier managed to secure an exemption from the Trump tariffs, set at a steep 145%, for smartphones and other electronics, according to The New York Times.
But that reprieve may not last long. The Trump administration has since floated new tariffs on semiconductor chips, a move that could drive up the cost of iPhones, Macs, iPads, and other Apple devices.
Earlier on Thursday, the Cupertino-headquartered company reported revenue of $95.36 billion for the March quarter, marking a 5% year-on-year increase. Net income rose to $24.8 billion, or $1.65 per share, beating Wall Street expectations of $1.63 per share on $94.68 billion in revenue.