10 Things Investors Should Know

The highest tariffs levied by the Trump administration are on imports from China. However, Apple expects that India will be the country of origin for the majority of iPhones that it sells in the U.S. during fiscal Q3. Nearly all AirPods, Apple Watches, iPads, and Mac products the company sells in the U.S. during Q3 will come from Vietnam. China will continue to be the source for most products sold outside the U.S., though.

Are any Apple products exposed to the 145% tariffs on Chinese imports? Yes, but the exposure is fairly limited. Cook said in the earnings call that some of the company’s AppleCare and accessories products sold in the U.S. are impacted by the steep Chinese tariffs.

The global reciprocal tariffs announced by the Trump administration in April 2025 don’t apply to most Apple products — at least not yet. That’s because the U.S. Commerce Department has launched a Section 232 investigation into the effects of tariffs on semiconductors and products that contain semiconductors. A Section 232 investigation (which refers to a section in the Trade Expansion Act of 1962) is used to assess the impact of imports on national security.

If most Apple products aren’t subject to global reciprocal tariffs or the 145% tariffs on Chinese imports, what tariffs do affect the company now?

Cook said that for fiscal Q2 and Q3, Apple’s tariff exposure is primarily related to President Trump’s tariffs announced in February 2025 on imports from Canada, Mexico, and China under the International Emergency Economic Powers Act (IEEPA). The president declared a national emergency related to fentanyl and other drug trafficking and used the IEEPA authority to levy tariffs in response.

Cook was asked in the earnings call about his thoughts on potential tariff-related price increases. He replied, “On the pricing piece, we have nothing to announce today.” That’s the best response for now. However, it seems likely that Apple will consider passing along higher costs caused by tariffs to consumers instead of absorbing the costs.

The word “uncertainty” was mentioned several times during Apple’s call. This uncertainty especially applies beyond the June quarter. Apple executives were careful to frame the discussion about the future by emphasizing that the company’s outlook assumes that “the global macroeconomic outlook doesn’t worsen.”

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Keith Speights has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.

Apple’s Tariff Impact: 10 Things Investors Should Know was originally published by The Motley Fool