Apple CEO sends blunt message on tariffs impact
Over the past few months, many experts have speculated that President Donald Trump's tariffs, primarily those levied against China, will have significant consequences for the U.S. economy. Meanwhile, consumers have anxiously waited to learn just how much the prices of goods will increase.
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Through it all, one company that has been in full focus is Apple (AAPL) , as people wonder if the prices of iPhones and MacBooks will rise. While there's been little doubt that the cost of Apple's products will increase, the amount has remained a mystery.
Recently, Apple CEO Tim Cook provided some context on what the tariffs will mean for his company. However, he did not answer the question that's likely been on many people's minds for months.
Apple CEO Tim Cook recently provided an important update on how much the current tariffs will impact the company.Image source: Getty Images
Apple braces for impact as tariff-imposed costs loom
Last week, Apple reported earnings for Q2 2025, coming in above estimates on multiple metrics. With both revenue and earnings-per-share slightly higher than the analysts had predicted, the company continued its four-quarter streak of beating Wall Street forecasts.
Related: Apple sees sharp narrative shift as tariffs dominate tech giant's outlook
On top of that, Apple saw 2% year-on-year growth from its iPhone revenue, indicating that demand for its flagship product isn't slowing down. But with the tariffs looming, questions abound as to whether price hikes are coming and if they are, how high they will be.
During the earnings call, Cook didn't specify how much iPhone prices are likely to rise in the coming year. However, he revealed that he believes Trump's tariffs will increase Apple's costs by roughly $900 million for the current quarter, ending in June. He also noted that this number is contingent on tariff rates remaining unchanged.
In addition, Cook highlighted one of Apple's businesses that has been severely affected by the tariffs so far. 'For China, there was an additional 125% tariff for imports of certain categories of products announced in April. And for us, that's some of our U.S. AppleCare and Accessories businesses, and brings the total rate in China for these products to at least 145%,' he stated.
Cook acknowledged that many Apple products aren't currently subject to the reciprocal tariffs announced last month, as the Department of Commerce is currently investigating semiconductor imports and the equipment needed to build them.
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