Trump's Tariffs to Cost Apple an Additional US$1.1 Billion

1 month ago 12

August 4, 2025 | 02:15 pm

TEMPO.CO, JakartaApple has disclosed that trade tariffs implemented by U.S. President Donald Trump have resulted in an estimated US$1.1 billion (approximately Rp17 trillion) in additional costs for the company during the quarter ending in September. Despite these financial pressures, Apple reported that iPhone sales have surpassed 3 billion units globally since the device's initial launch in 2007.

Apple CEO Tim Cook indicated that in the last quarter, ending in June, the company incurred approximately US$800 million in tariff expenses. This figure was marginally lower than the earlier projection of US$900 million.

"The bulk of the tariffs that we paid were the IEEPA [International Emergency Economic Powers Act] tariffs that hit early in the year, related to China," Cook said, as quoted from The Verge report on August 1, 2025.

The new reciprocal tariffs enacted by the Trump administration have reportedly affected Apple's entire product line, much of which is manufactured in China, India, and Vietnam. Cook specified that the majority of iPhones sold within the U.S. are now assembled in India, while most Mac computers, iPads, and Apple Watches originate from Vietnam.

Trump had even threatened to escalate tariffs further if Apple did not relocate a portion of its production to the United States. "There are many factors that could change, including tariff rates," Cook acknowledged.

Despite these challenges, Apple continues to demonstrate robust sales performance. Cook announced that the cumulative number of iPhones sold since 2007 has reached an impressive 3 billion units.

Tech Crunch reported that the first billion units were sold over nine years by 2016. The subsequent 2 billion units were sold within the following nine years, showcasing accelerated market adoption.

In this quarter, iPhone sales saw a 13 percent annual increase, contributing US$44.6 billion to Apple's total revenue of US$94 billion. However, analysts caution that this surge in sales might be transient. It is speculated that this increase could be attributed to consumer apprehension that Trump's planned tariffs would lead to a drastic escalation in iPhone prices within the U.S. market.

Editor’s Choice: Trump: Not Only iPhones, All Phones From Outside the US Will Be Hit With 25 Percent Tariff

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