On Wednesday, Apple conducted its quarterly earnings call, discussing the financial results from the previous quarter. During this session, CEO Tim Cook addressed the tariffs imposed on various countries by President Trump and their potential implications for Apple’s business. Cook estimated that if current tariff rates and policies remain unchanged this quarter, the impact could be approximately $900 million in added costs.

He cautioned, however, that this estimate should not be used as a foundation for forecasting future quarters due to specific unique factors that may influence outcomes in the June quarter. He elaborated on the possible consequences of the tariffs, indicating that for the upcoming June quarter, most iPhones sold in the U.S. are expected to originate from India. Additionally, the majority of iPads, Macs, Apple Watches, and AirPods sold in the U.S. are anticipated to come from Vietnam, while China will continue to be the primary source for product sales outside the United States.

During the Q&A segment, Cook analyzed the current tariff situation further. He noted that for the June quarter, a significant portion of Apple’s tariff exposure arises from a 20 percent IEEPA-related tariff on products imported from China. Furthermore, he highlighted a recently announced 125 percent tariff on certain product categories from China, including U.S. AppleCare and accessories, bringing the total tariff rate for these items to at least 145 percent.

Cook also reassured stakeholders that most of its products are exempt from the global reciprocal tariffs announced the previous month, as the Commerce Department is currently conducting a Section 232 investigation into semiconductor imports. In light of the ongoing global trade tensions, Cook refrained from predicting potential costs beyond June. Given the rapidly changing nature of tariffs, this cautious approach seems prudent as the landscape continues to evolve.