Apple Faces $900 Million Quarterly Loss Amid Rising U.S. Tariffs

Apple is expected to face a $900 million loss this quarter due to rising U.S. tariffs, as announced by CEO Tim Cook during the company’s Q2 2025 earnings call.

 These tariffs, stemming from Trump-era policies, are increasing the costs of importing products from China, where most of Apple’s manufacturing has traditionally been based.

To mitigate the impact, Apple has been shifting production of U.S.-bound iPhones, iPads, Macs, Apple Watches, and AirPods to facilities in India and Vietnam. Despite this diversification, some products, especially AppleCare accessories imported from China, still face tariffs as high as 145%, and new tariff hikes scheduled for July could worsen the situation.

Read More: Apple to Shift All US iPhone Production from China to India by 2026

Tim Cook highlighted the difficulty in predicting the tariff impact beyond June, emphasising ongoing uncertainty in trade policies. He also praised Apple’s supply chain and operations teams for effectively managing these challenges so far.

In summary, Apple’s $900 million quarterly loss is directly tied to escalating tariffs on Chinese imports, prompting a strategic shift in manufacturing to India and Vietnam, but future tariff increases and policy changes pose continued risks to the company’s costs and profitability.