Tim Cook, CEO of Apple Inc., attends the inauguration ceremony of the 60th president of the United States in the Rotunda of the U.S. Capitol in Washington, DC, on Monday, January 20, 2025.
Bloomberg | Getty Images
Apple’s tariff bill is running at about $1 billion per quarter, but that number should start to shrink following the Supreme Court’s ruling on tariffs.
The Supreme Court on Friday struck down most of President Donald Trump’s far-reaching tariff policies, delivering a major rebuke to the president’s major economic policy.
Apple has paid about $3.3 billion in tariffs since President Trump imposed them last year.
The iPhone maker’s stock rose about 1% on Friday.
Friday’s decision means Apple could start to realize lower production costs and start locking in more profits. The company may also be under pressure to move production out of China and simplify its supply chain.
Apple declined to comment.
Significant tariff costs stem from U.S. import duties on products and components manufactured overseas, particularly from China and Asian partners such as Vietnam and India.
When CEO Tim Cook announced the tariff plan in May, he said Apple would source half of its iPhones for the U.S. from India, and most of its other U.S. products, such as Macs, AirPods and watches, from Vietnam, which at the time had lower tariffs than China.
Friday’s decision repeals President Trump’s tariffs on Chinese goods, which stood at 47% in December. It will also allow Apple to produce more products for the U.S. in China instead of diverting them to India or Vietnam, where most products for countries other than the U.S. are sourced.
Cook stressed on the earnings call that Apple has largely absorbed the cost of tariffs to avoid sudden price increases for customers.
Friday’s ruling means the U.S. government could owe importers more than $175 billion in refunds after the Supreme Court ruled in a 6-3 decision that tariffs unilaterally imposed by President Trump were illegal.
One of the big questions is whether Apple will fight to get the tariffs back or eat up costs to avoid the president’s wrath.
At a press conference Friday afternoon, President Trump referred to the SCOTUS decision and did not commit to refunding U.S. companies that paid the tariffs, saying he expected years of “litigation” over refunds.
The tariffs have tested the relationship between the commander-in-chief and the chief executive of one of the world’s most valuable companies.
The once-strong relationship between Mr. Trump and Mr. Cook began to unravel over the idea of an American-made iPhone. In May, President Trump threatened to impose a 25% tariff on iPhones, saying he had “a little bit of a problem with Tim Cook.”
Mr. Cook has gone on a charm offensive.
In August, he appeared at the White House with President Trump and announced plans to spend about $600 billion in the United States over four years. Apple also said it would work on purchasing parts and expanding relationships with U.S. suppliers.
Cook presented Trump with a custom-engraved glass plaque featuring a 24-karat gold base.
Last month, Cook attended a White House screening of “Melania,” a documentary about first lady Melania Trump.
Despite Friday’s ruling, the tariffs remain a moving target, and many questions remain about the impact on companies like Apple.
Hours after the Supreme Court struck down the reciprocal tariffs, the president announced he would sign an executive order imposing a new 10% “global tariff” under Section 122 of the Trade Act of 1974.
Tariffs under the law can only last for 150 days, and any extension requires Congressional approval.
The president also said the administration is invoking Section 301 to launch multiple investigations into possible unfair trade practices, which could lead to additional new tariffs.
CNBC’s Steve Kovach contributed to this report.
