Trump tariffs: Apple braces for $1.1 billion hit as Tim Cook says most iPhones sold in the US coming from India

Apple iPhone

Apple is facing a sharp rise in costs due to President Donald Trump’s tariffs, with CEO Tim Cook revealing that the company expects to pay around $1.1 billion in duties for the September quarter alone. That’s on top of $800 million Apple already shelled out in the June quarter—less than the $900 million it had previously forecast.

The bulk of these costs stem from tariffs imposed under the International Emergency Economic Powers Act (IEEPA), which have primarily targeted goods from China. Cook clarified during the earnings call that these tariffs began hitting Apple earlier this year, significantly affecting its cost structure.

Apple’s global manufacturing footprint has helped it offset some of the blow. According to Cook, the majority of iPhones sold in the US are now assembled in India, while Macs, iPads, and Apple Watches predominantly come from Vietnam. Still, since many components are sourced globally and final assembly often happens outside the US, the tariffs affect nearly all Apple devices.

President Trump has continued to pressure Apple to shift more production to the US, even threatening steeper tariffs if the company fails to do so. Despite the uncertainty, Apple’s performance remains solid: Q3 revenue rose 10% to $94 billion, driven by strong iPhone and Mac sales.

While Cook admitted that “tariff rates could still change,” Apple seems to be navigating the geopolitical landscape with relative resilience—though not without paying a hefty price.