Apple braces for $900m blow from Trump tariffs

Tariffs connected goods coming into the US volition adhd astir a cardinal dollars to Apple's costs this quarter, the tech elephantine has said, contempt President Donald Trump's determination to spare cardinal electronics from the caller import taxes.

The estimation from the iPhone shaper comes arsenic firms are scrambling to respond to Trump's tariff strategy, which is disrupting proviso chains and raising uncertainty astir user demand.

Apple said it was shifting accumulation of iPhones bound for the American marketplace distant from China, which is facing the highest duties.

The bulk of iPhones sold successful the US successful coming months volition beryllium made successful India, Apple said.

For now, the turmoil has near Apple's income unscathed.

The institution said revenues for the archetypal 3 months of the twelvemonth roseate 5% from the aforesaid play past year, to $95.4bn.

Amazon, different tech elephantine whose results were being intimately watched for signs of tariff damage, likewise said income were holding up, rising 8% year-on-year successful its North America e-commerce concern successful the astir caller quarter.

It forecast akin maturation successful the months ahead.

"Obviously nary 1 of america knows precisely wherever tariffs volition settee oregon when," said Amazon brag Andy Jassy, portion noting that the steadfast has emerged from periods of disruption – similar the pandemic – stronger than before.

"We're often capable to upwind challenging conditions amended than others," helium said. "I'm optimistic this could hap again."

Apple shares had plummeted aft Trump announced his medication would levy "reciprocal tariffs" connected products imported to the United States, with the purpose of persuading companies to manufacture much successful the US.

Trump has said helium hopes Apple products successful peculiar volition beryllium made successful the country.

But the medication has faced important unit to mean its plans. Shortly aft the tariffs went into effect, it announced that definite electronics, including phones and computers, would beryllium exempted.

On a telephone with investors to sermon the firm's quarterly performance, Apple brag Tim Cook seemed keen to gully attraction to Apple's investments successful the US, opening with a reminder of its plans to put $500bn crossed aggregate states implicit the adjacent 4 years.

But though Apple is already shifting its proviso concatenation for US-bound products distant from China, it is India and Vietnam that are poised to beryllium the largest beneficiaries, not the US.

Mr Cook said the institution expected to marque the bulk of iPhones destined for the US successful India by the extremity of June, and determination accumulation of astir each iPads, Macs, Apple Watches and Airpods to Vietnam.

"We bash expect the bulk of iPhones sold successful US volition person India arsenic their state of origin," Mr Cook said, referring to the adjacent 3 months of trading.

He said Vietnam would beryllium the state of root "for astir each iPad, Mac, Apple Watch and AirPods merchandise sold successful the US".

China volition stay the state of root for the immense bulk of full products sold extracurricular the US, helium added.

Nevertheless, the displacement of the iPhone proviso concatenation to India was "impressive" according to Patrick Moorhead, main enforcement of Moor Insights & Strategy.

"This is simply a marked alteration from what [Cook] said a fewer years backmost erstwhile helium said that lone China tin physique iPhones," Mr Moorhead said.

"There is tons of advancement that Apple indispensable amusement present but it's a beauteous bully start," helium said.

Amazon is besides repositioning itself to summation resilience successful the look of the tariffs.

The institution said it moving to marque definite it had a diverseness of sellers and Mr Jassy said helium felt the steadfast was well-positioned for the months ahead, pointing to the firm's standard and its relation supplying mundane essentials.

For now, it said income had not been wounded by the tariff turmoil. If anything, executives said the concern whitethorn person benefited from immoderate customers starting to stockpile.

Overall income jumped 9% to $155.7bn successful the archetypal 3 months of 2025, compared with the aforesaid play past year, portion profits surged much than 60% year-on-year to astir $17bn.