# Apple Navigates Tariff Uncertainty: Cook Estimates $900M Impact in Q3

## Apple Navigates Tariff Uncertainty: Cook Estimates $900M Impact in Q3

Apple CEO Tim Cook addressed the elephant in the room – tariffs – during the company’s second-quarter earnings call on Thursday, offering a glimpse into their potential impact on the tech giant. While the March quarter saw only a “limited impact,” Cook cautioned that forecasting the future remains a challenge amidst the evolving U.S. trade landscape.

However, under the assumption that current global tariff rates and policies remain unchanged, Apple projects tariffs will add approximately $900 million to its costs in the third quarter. This figure, while significant, was met with relative relief by investors.

Cook emphasized that this $900 million estimate is not a predictor of future performance. He explicitly warned against using it to project tariff impacts in subsequent quarters, citing “unique factors” benefiting the June quarter that may not be present later.

In a separate interview with CNBC, Cook highlighted Apple’s proactive efforts to mitigate tariff risks. He noted that roughly half of iPhones destined for the U.S. are now sourced from India, with the majority of other products being manufactured in Vietnam. This diversification strategy aims to lessen the company’s reliance on regions more susceptible to tariff pressures.

When pressed for specifics regarding the June quarter and beyond, Cook remained guarded, stating, “I don’t want to predict the future, because I’m not sure what will happen with the tariffs.” This reluctance to commit to long-term forecasts underscores the volatile nature of the current trade environment and the difficulty in accurately assessing its future implications.

Cook’s active involvement in trade discussions is also evident. Following a meeting with President Trump, Apple received exemptions that prevented iPhones from being subject to trade policy changes that threatened to significantly hike prices.

Despite the uncertainty, Cook reassured investors, emphasizing Apple’s commitment to long-term innovation and prudent decision-making. “For our part, we will manage the company the way we always have, with thoughtful and deliberate decisions, with a focus on investing for the long term, and with dedication to innovation and the possibilities it creates,” he stated. He expressed confidence in Apple’s ability to continue creating leading products and services, enriching user experiences, and upholding its unique business practices.

While Apple anticipates a manageable $900 million hit in Q3 due to tariffs, the long-term implications remain unclear. The company’s future performance will depend on the stability of global trade policies and its continued ability to adapt to the ever-changing geopolitical landscape.