Tim Cook Warns of Extra Costs Due to New Trade Measures in the U.S.
Apple expects to spend about 900 million dollars on import duties in the second quarter of 2025. CEO Tim Cook said this during a conversation with investors. The increased costs are the result of American tariffs that apply to products made in China.
Production Shifts, Costs Remain
According to Cook, the production of iPhones for the American market has largely shifted to India. iPads, Macs, Apple Watch and AirPods are assembled in Vietnam. Only for the international market does China remain important for production.
Nevertheless, Apple does not escape the impact of American measures. The company pays a 20 percent tariff on certain imports from China, and an additional import duty of 125 percent on accessories and AppleCare products. The latter measure was only introduced in April and causes the total tariff for some product categories to rise to 145 percent.
No Tariffs on Chips for Now
Most of Apple’s products, including iPhone, Mac, iPad, Apple Watch and Vision Pro, remain unaffected for now. This is because the U.S. Department of Commerce is still investigating semiconductors and related equipment under Article 232. Cook emphasizes that the current estimate of 900 million dollars only applies to the current quarter. “We don’t want to make predictions for future quarters.”