Cook’s insights on future costs
In the earnings call, CEO Tim Cook noted limited tariff impact in Q2 due to supply chain optimisation but cautioned that future impacts are hard to predict due to potential policy shifts. Cook estimated that President Trump’s tariffs would increase costs by $900 million in Q3 (April to June 2025), assuming current global tariff rates remain unchanged.
Trump’s tariff ultimatum
On 23 May 2025, US President Trump threatened a 25% tariff on Apple products not manufactured in the US, criticising Apple’s India production plans in a Truth Social post.
“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a tariff of at least 25% must be paid by Apple to the US.”
Trump’s aggressive post resulted in a 3% fall in Apple’s share price that day, closing at $195.27. Analysts estimate that US production could raise iPhone prices to $3,500, impacting affordability.