Apple CEO Tim Cook said President Trump’s tariffs could tank the company's profits in the second quarter during a Thursday earnings call.
“For the June quarter, currently we are not able to precisely estimate the impact of tariffs, as we are uncertain of potential future actions prior to the end of the quarter,” Cook told attendees.
“However, for some color, assuming the current global tariff rates, policies, and applications do not change for the balance of the quarter and no new tariffs are added, we estimate the impact to add $900 million to our costs,” he added.
The president has imposed a 145 percent tariff on China, where most of Apple’s products are made. However, Trump partially exempted electronics such as smartphones and computers from the new reciprocal duty on imports.
Democrats have questioned the motive behind the move, which would leave some sector-specific companies paying more than others.
Cook said in spite of the potential uptick in costs, Apple has “certain unique factors” that will benefit the June quarter. The industry leader has been spotted with Trump numerous times after his November win and sat closely behind him during the inauguration.
But in spite of the budding connection between Cook and the president and Apple's product exemption from tariffs, Trump said no one would be let “off the hook” from levies.
“These products are subject to the existing 20 percent Fentanyl Tariffs, and they are just moving to a different Tariff ‘bucket,’” the president wrote in a Truth Social post.
“We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations,” he added.
Cook said the company would remain a top competitor regardless of what may emerge in the markets.
“For our part, we will manage the company the way we always have, with thoughtful and deliberate decisions, with a focus on investing for the long term, and with dedication to innovation and the possibilities it creates,” Cook said on Thursday’s call.
“As we look ahead, we remain confident. Confident that we will continue to build the world’s best products and services. Confident in our ability to innovate and enrich our users’ lives. And confident that we can continue to run our business in a way that has always set Apple apart.”
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