Apple Faces $1.1 Billion Tariff Hit This Quarter

Apple is facing a significant tariff burden this quarter, with CEO Tim Cook projecting costs of around $1.1 billion, up from $800 million last quarter, due to ongoing US trade policies targeting imports from China, India, and Vietnam. Despite shifting much of its iPhone production to India and other products to Vietnam to mitigate China-related tariffs, Apple remains vulnerable as new tariffs extend to these countries. President Donald Trump's administration has pressured Apple to bring manufacturing back to the US, threatening even higher tariffs on devices made overseas, including those assembled in India. Cook emphasized Apple's commitment to the US, announcing a $500 billion investment over the next four years and plans to create 20,000 new jobs, supporting millions of US jobs tied to Apple's ecosystem. While Apple continues to report strong revenue growth, the company must navigate the complex trade environment that continues to impose financial strain on its global supply chain. The situation underscores the challenges of balancing global production strategies amid escalating trade tensions between the US and other countries.