Apple’s tariff costs are expected to reach $1.1 billion from July to September

Apple recently released data stating that the Trump administration’s tariff policy will result in an additional $1.1 billion in costs for the company from July to September 2025. Tariffs on Chinese-made products are impacting the company. Although Apple is shifting production to India, costs will inevitably increase if tariffs on semiconductors take effect.

Apple recorded $800 million in tariff costs from April to June. These costs primarily stem from the 20% tariff imposed by the United States on all products imported from China under the International Emergency Economic Powers Act (IEEPA).

The vast majority of iPhones sold in the United States have been assembled in China, but to avoid additional tariffs imposed by the United States on China, the company will shift the majority of production to India starting in spring 2025.

However, the strategy of shifting production to India is not without risks. Although the Trump administration excluded smartphones from the list of products subject to reciprocal tariffs in April, the semiconductor tariffs currently under consideration could include smartphones.

If the semiconductor tariffs take effect, even if manufactured in India, tariff costs will increase, potentially leading to higher iPhone prices. The price of new iPhone models, which are thought to be available as early as fall 2025, may also be affected.