Apple braces for $ 900 million. Blow from tariffs on Trump

The tariffs for goods coming to the United States will add almost a billion dollars to Apple’s expenses in this quarter, the technological giant said, despite President Donald Trump’s decision on a vocation of key electronics from new import taxes.

The estimate of the iPhone manufacturer comes when firms seek to respond to Trump’s tariff strategy that violates supply chains and increases uncertainty due to consumer demand.

Apple has stated that the production of iPhones aimed at the American market from China, which is facing the highest duties.

Most iPhones sold in the US in the coming months will be made in India, Apple said.

So far, the shock has left Apple’s sales intact.

The company said the income for the first three months of the year increased by 5% compared to the same period last year, to $ 95.4 billion.

Amazon, another technological giant, the results of which were closely monitored by the signs of tariff damage, also stated that sales were held, increasing 8% compared to the year in their e -commerce in North America in the last quarter.

This predicts similar growth in the coming months.

“Obviously, none of us know exactly where the tariffs will be settled or if,” said Amazon Andy Yassi, noting that the firm came out of the periods of disruption – as a pandemic – stronger than before.

“We often know how to get out of the conditions better than others,” he said. “I am optimistic that it can happen again.”

Apple’s shares have fallen after Trump announced that his administration charges “mutual tariffs” for products imported in the US to convince the company more to produce in the US.

Trump said he hoped Apple’s products, in particular, will be made in the country.

But the administration faced significant pressure to soften its plans. Shortly after the tariffs came into force, she announced that a certain electronics, including phones and computers, would be released.

At the call with investors, discuss the quarterly performance of the firm, Apple’s boss Tim Cook seemed to seek attention to Apple’s investment in the US, opening a reminder of his plans to invest $ 500 billion in several states over the next four years.

But although Apple is already moving its supply chain for American products from China, it is India and Vietnam that they are ready to become the largest beneficiaries, not the US.

Mr. Cook said the company is expected to make most iPhones intended for the US in India by the end of June, and move the production of almost all iPad, Mac, Apple Watches and Air Stones in Vietnam.

“We expect that most iPhones sold in the United States will have India as their country of origin,” Mr. Cook said, citing the next three months of trading.

He said Vietnam would become a country of origin “for almost all iPad, Mac, Apple Watch and AirPods sold in the US.”

China will remain a country of origin for the vast majority of total products sold outside the United States, he added.

However, the transition of the iPhone supply network to India was “impressive”, according to Patrick Murched, CEO Moor Insights & Strategy.

“This is a noticeable change from what (Cook) said a few years ago when he said only China could create iPhones,” said Mr. Murched.

“There is a lot of progress that Apple should show here, but it’s a pretty good start,” he said.

Amazon also rearranges itself to increase resilience before tariffs.

The company said it was working to make sure it has a variety of sellers, and Mr Yasi said he believed that the firm was well located for months, pointing to the scale of the firm and its role that provides daily essentials.

So far, it is said that sales have not been affected by tariff ups. If anything, the executives said the business could use some customers who are starting the stock.

The total sales volume jumped by 9% to $ 155.7 billion in the first three months of 2025, compared to the same period last year, while the profit increased more than 60% compared to the year about $ 17 billion.