How Trump’s trade war is still messing with your next iPhone

Just a heads up, if you buy something through our links, we may get a small share of the sale. It’s one of the ways we keep the lights on here. Click here for more.

Apple just revealed it’s bracing for a $1.1 billion hit this quarter, thanks to new tariffs raised by the Trump administration. That’s not a typo—eleven hundred million dollars, mostly courtesy of duties on devices made outside the U.S., according to The Verge.

If you thought Apple would just eat those costs, think again.

CEO Tim Cook, during a recent earnings call, didn’t mince words. “The bulk of the tariffs that we paid were the IEEPA tariffs that hit early in the year, related to China,” Cook told analysts.

Apple has already shelled out $800 million just last quarter—a bit less than the $900 million they expected, but still a mountain of cash, as reported by Reuters.

Why all the drama? For years, Apple’s supply chain has been a global relay race. Most iPhones sold in the U.S. now roll off assembly lines in India, while Macs, iPads, and Apple Watches are coming from Vietnam—moves Apple made to dodge the brunt of U.S.-China trade crossfire.

But Trump’s administration wasn’t having it. The president threatened even higher tariffs unless Apple brought manufacturing back home. “There are many factors that could change, including tariff rates,” Cook admitted, hinting that things could get worse if policy shifts again.

Here’s where it gets spicy: shifting production out of China hasn’t given Apple the clean break it hoped for. India just overtook China as the top exporter of smartphones to the U.S. this year—mostly because Apple moved so much iPhone assembly there, according to CNN.

But Trump’s new wave of tariffs doesn’t just target China. India and Vietnam are in the crosshairs too, with duties as high as 25% on certain imports.

As Business Insider reports, Trump warned Cook that iPhones made in India could get slapped with those same fees, all in an effort to twist Apple’s arm into building more products in the States.

Despite all the posturing and extra costs, Apple’s quarterly revenue is still flexing—up 10% to $94 billion between April and June, with iPhone and Mac sales holding strong.

But Cook’s message is clear: these tariffs are more than just a line item on a spreadsheet—they’re a moving target and a real pain.

“The majority of iPhones sold in the US are manufactured in India,” Cook said, “but there are many factors that could change, including tariff rates.”

So, next time you’re grumbling about iPhone prices, remember: it’s not just Apple’s margins you’re paying for. You’re footing the bill for a global game of trade chicken—one that’s still being played. Isn’t capitalism great?

What’s your take on Apple’s tariff dilemma—necessary policy or just higher prices for us? Drop a comment below or join the conversation on Facebook or Twitter!

Kevin Raposo

Kevin is KnowTechie's founder and executive editor. With over 15 years of blogging experience in the tech industry, Kevin has transformed what was once a passion project into a full-blown tech news publication. Shoot him an email at kevin@knowtechie.com.