Tim Cook: Apple to incur a $1.1 billion tariff expense this quarter.

Apple is currently facing elevated tariff costs this quarter, which are projected to reach a significant $1.1 billion. The company’s CEO, Tim Cook, shared these projections with investors during an earnings call on Thursday, highlighting the impact of ongoing trade tensions between China and the U.S. government.

In the quarter that concluded in June, tariffs cost Apple $800 million, a figure that turned out to be lower than originally anticipated. “The bulk of the tariffs that we paid were the IEEPA [International Emergency Economic Powers Act] tariffs that took effect earlier in the year, related to China,” Cook explained, according to The Verge.

“There are many factors that could change, including tariff rates,” the CEO noted. In the past, the former President has raised concerns about imposing higher tariffs on iPhones as part of efforts to encourage domestic production. However, experts believe that such a scenario is very unlikely, given the current infrastructure challenges in the U.S. for manufacturing flagship smartphones.

During the earnings call, Cook also shared the exciting news that the company set a “June quarter revenue record,” with impressive growth across its iPhone and Mac products and services divisions. He expressed optimism, stating that the results were “better than expected.” Despite economic uncertainties, including a negative July jobs report and the potential for tariffs, tech companies like Apple, Meta, and Reddit continue to report strong revenue this quarter, signifying resilience in the industry.