Tim Cook, Apple Inc. Chief Executive Officer, at the 60th Presidential Inauguration, Monday, January 20, 2025, in the Rotunda of the US Capitol in Washington, DC.
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Apple’s tariff bills were around $1 billion per quarter, but that number should drop after next year. Supreme court decision on tariffs.
Supreme Court on Friday hit A big part of the president Donald Trumpwide range rate The agenda is a major rebuke to the president’s core economic policies.
Apple has paid about $3.3 billion in tariffs since Trump took the initiative last year.
The iPhone the maker’s shares rose about 1% on Friday.
Friday’s decision means Apple will be able to lower production costs and keep more of its margins. The company may also face less pressure to move its manufacturing out of China and streamline its supply chain.
Apple declined to comment.
Large tariff costs come from US import duties on products and components manufactured abroad, particularly from China and other Asian partners such as Vietnam and India.
CEO when he made the plan to handle the rates in May Tim Cook Apple says it buys half of its iPhones from the US India and many of its other U.S. products, such as Macs, AirPods and watches, came from Vietnam, where tariffs at the time were lower than China.
Friday’s decision eliminated Trump’s tariffs on Chinese-made goods, which were already 47%. December. It also frees Apple to make more U.S.-related products in China, with most of its products shipped to non-U.S. countries rather than India and Vietnam.
During earnings calls, Cook noted that Apple mostly absorbs tariff costs to avoid sudden price jumps for consumers.
Friday’s decision means the U.S. government may be in debt More than $175 billion in refunds to importers after the Supreme Court ruled 6-3 that Trump’s unilaterally imposed tariffs were illegal.
One big question is whether Apple will fight to roll back its tariffs or eat the costs to avoid angering the president.
Addressing the SCOTUS decision at a press conference Friday afternoon, Trump did not commit to refunding American companies that paid the tariffs and said he expected years of “litigation” over the refunds.
The tariffs have tested the relationship between the commander-in-chief and the head of one of the world’s most valuable companies.
The hard once Relations between Trump and Cook began to sour over the idea of an iPhone made in the US. In May, Trump said he had “a little problem with Tim Cook” and threatened to strike 25 percent. Tariff for iPhones.
Cook launched an attractive attack.
It is in August appeared With Trump at the White House announcing plans to spend about $600 billion in the U.S. over four years, Apple has also committed to buying parts and expanding its relationships with American suppliers.
Cook presented Trump with a specially engraved glass plaque with a 24-carat gold base.
Last month, Cook attended a screening of the film at the White House.MelaniaDocumentary about First Lady Melania Trump.
Despite Friday’s decision, the tariffs are still a moving target, leaving many questions about the impact on companies like Apple.
Hours after the Supreme Court struck down his reciprocal tariffs, the president said he would sign the deal. executive order the imposition of a new 10% “global tariff” which it applies under Section 122 of the Trade Act of 1974.
Tariffs using this provision may last only 150 days, with any extension requiring congressional approval.
The administration will also use Section 301 to launch several investigations into potentially unfair trade practices, which could lead to additional new tariffs, the president said.
CNBC’s Steve Kovacs contributed to this report.