Apple braces for $900m blow from Trump tariffs | EUROtoday

Tariffs on items coming into the US will add almost a billion {dollars} to Apple’s prices this quarter, the tech big has mentioned, regardless of President Donald Trump’s resolution to spare key electronics from the brand new import taxes.

The estimate from the iPhone maker comes as companies are scrambling to answer Trump’s tariff technique, which is disrupting provide chains and elevating uncertainty about client demand.

Apple mentioned it was shifting manufacturing of iPhones sure for the American market away from China, which is going through the best duties.

The majority of iPhones offered within the US in coming months can be made in India, Apple mentioned.

For now, the turmoil has left Apple’s gross sales unscathed.

The firm mentioned revenues for the primary three months of the yr rose 5% from the identical interval final yr, to $95.4 billion.

Amazon, one other tech big whose outcomes had been being carefully watched for indicators of tariff injury, likewise mentioned gross sales had been holding up, rising 8% year-on-year in its North America e-commerce enterprise in the latest quarter.

It forecast related development within the months forward.

“Obviously no one of us knows exactly where tariffs will settle or when,” mentioned Amazon boss Andy Jassy, whereas noting that the agency has emerged from durations of disruption – just like the pandemic – stronger than earlier than.

“We’re often able to weather challenging conditions better than others,” he mentioned. “I’m optimistic this could happen again.”

Apple shares had plummeted after Trump introduced his administration would levy “reciprocal tariffs” on merchandise imported to the United States, with the intention of persuading firms to fabricate extra within the US.

Trump has mentioned he hopes Apple merchandise particularly can be made within the nation.

But the administration has confronted vital stress to reasonable its plans. Shortly after the tariffs went into impact, it introduced that sure electronics, together with telephones and computer systems, can be exempted.

On a name with buyers to debate the agency’s quarterly efficiency, Apple boss Tim Cook appeared eager to attract consideration to Apple’s investments within the US, opening with a reminder of its plans to take a position $500bn throughout a number of states over the subsequent 4 years.

But although Apple is already shifting its provide chain for US-bound merchandise away from China, it’s India and Vietnam which might be poised to be the most important beneficiaries, not the US.

Mr Cook mentioned the corporate anticipated to make the vast majority of iPhones destined for the US in India by the top of June, and transfer manufacturing of just about all iPads, Macs, Apple Watches and Airpods to Vietnam.

“We do expect the majority of iPhones sold in US will have India as their country of origin,” Mr Cook mentioned, referring to the subsequent three months of buying and selling.

He mentioned Vietnam can be the nation of origin “for almost all iPad, Mac, Apple Watch and AirPods product sold in the US”.

China will stay the nation of origin for the overwhelming majority of complete merchandise offered exterior the US, he added.

Nevertheless, the shift of the iPhone provide chain to India was “impressive” in keeping with Patrick Moorhead, chief government of Moor Insights & Strategy.

“This is a marked change from what [Cook] said a few years back when he said that only China can build iPhones,” Mr Moorhead mentioned.

“There is lots of progress that Apple must show here but it’s a pretty good start,” he mentioned.

Amazon can be repositioning itself to extend resilience within the face of the tariffs.

The firm mentioned it working to ensure it had a range of sellers and Mr Jassy mentioned he felt the agency was well-positioned for the months forward, pointing to the agency’s scale and its position supplying on a regular basis necessities.

For now, it mentioned gross sales had not been damage by the tariff turmoil. If something, executives mentioned the enterprise could have benefited from some clients beginning to stockpile.

Overall gross sales jumped 9% to $155.7bn within the first three months of 2025, in contrast with the identical interval final yr, whereas earnings surged greater than 60% year-on-year to roughly $17bn.