New York, May 1 (EFE).- Apple warned that United States tariffs imposed under United States President Donald Trump’s trade policies could increase the company’s costs by 900 million dollars next quarter if current rates remain unchanged.
“We cannot precisely estimate the full impact of the tariffs, but assuming the current global tariff rates hold through the end of the quarter, we expect an added cost of around 900 million dollars”, said CEO Tim Cook during a call with investors following the release of Apple’s second-quarter earnings report.
Cook noted that this estimate “should not to be used” to forecast future performance, as the third quarter, which ends in June for Apple, which does not follow the calendar year, may be influenced by other variables.
He added that Apple plans to navigate the current economic landscape with “careful and deliberate decisions focused on long-term investment and innovation.”
To reduce exposure to Chinese tariffs, Cook said most iPhones sold in the US will soon be manufactured in India, while nearly all iPads, Macs, Apple Watches, and Airpods will be produced in Vietnam, two countries with lower US tariff rates than China.
However, China will remain the primary source for most of Apple’s international product sales, he added.
The call came after Apple posted-better-than-expected second-quarter results, with profits rising 4.8% to 24.78 billion dollars and revenue increasing by 5.07%.
Cook, who in recent months has maintained a notably cooperative relationship with Trump, like other tech industry leaders, said the impact of tariffs in the past quarter was limited, thanks to adjustments made in Apple’s supply chain and inventory management.
The warning comes amid ongoing concerns about global trade tensions and supply chain disruptions, especially as the US continues to reassess its trade relationship with China and other key partners. EFE
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