Apple eats $1.1B hit from US tariffs
Apple absorbed $1.1 billion in tariff-related costs during fiscal Q4 2025, matching its prior forecast, and expects that figure to rise to $1.4 billion in the current December-ending quarter, according to its CFO. Despite securing a broad import tariff exemption from the Trump administration by pledging $600 billion in U.S. investments over four years, Apple still faces financial pressure from its complex global supply chain.
The company has shifted iPhone production from China to India and relocated final assembly of its Vision Pro headsets to Vietnam, where it also plans to manufacture new home devices. These include a tabletop AI robot with mobility features, a screen-equipped HomePod for smart home control, and indoor security cameras.
Apple’s U.S. investment plan includes building a domestic silicon supply chain with partners such as Texas Instruments and Samsung, expanding data center capacity across five states, and establishing a Manufacturing Academy in Detroit. It has already begun deploying U.S.-made AI servers to support Apple Intelligence and Private Cloud Compute. The company welcomed the recent reduction of China’s fentanyl-related tariff to 10 percent as a positive development.
