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Tim Cook: Apple is relaxed about possible iPhone tariffs

by Milan
May 1, 2025
in News
Apple iPhone

Image: Shutterstock / Ringo Chiu

Trade policy continues to simmer in the US and China, and tariffs on electronic products are regularly mooted. Many are wondering: Will Apple soon have higher costs that will then be passed on to you as a customer? Tim Cook, CEO of Apple, takes a relaxed view of this. In an interview with CNBC, he explains why Apple isn't particularly concerned about possible US tariffs on products like the iPhone.

Apple just released its latest quarterly results. Questions about its dependence on China and the potential impact of tariffs on supply chains were inevitable. Investors and analysts are watching closely, as tariffs could squeeze margins or drive up prices. But Tim Cook makes it clear that Apple has long since taken precautions – in a way that surprises many.

Production for the USA no longer takes place via China

According to Tim Cook, about half of the iPhones sold in the US are no longer manufactured in China, but in India. This means that even if the US were to impose tariffs on products from China, many iPhones would not be affected at all. According to Cook, other Apple products such as Macs, iPads, AirPods and the Apple Watch also now largely come from Vietnam, a country with significantly lower tariff risks. This is good news for the US. Products sold there are already manufactured in countries that are either not affected at all or only slightly affected by tariffs. This takes pressure off the debate about possible price increases (via CNBC ).

China remains important, but not for everything

While Cook points out that China continues to play a central role—especially in production for markets outside the US. China remains Apple's most important manufacturing location for the global market, the restructuring toward India and Vietnam nevertheless demonstrates that Apple is actively preparing for potential geopolitical risks.

Long-term plans: Complete switch to India for US iPhones

Another important point: Apple plans to produce all iPhones for the US market exclusively in India by 2027. The goal is ambitious, but realistic given the progress already made. Should stricter tariffs on electronics from China actually be imposed in the future, Apple would have a clear advantage – both over its competitors and in terms of its own planning security.

No tariffs on Apple products so far – but caution remains

Apple currently benefits from exemptions that apply to smartphones, computers, and related technology products. These protect the company from acute tariff burdens. Nevertheless, uncertainty persists, especially on Wall Street, regarding the United States' next trade policy steps. This is precisely why Cook's statement is also a signal to the stock market: Apple is prepared.

  • Apple Q2/2025: Revenue and profit increase

Apple has taken precautions

If you live in the US and are wondering whether your next iPhone or MacBook will soon be more expensive because it's made in China, you can rest assured. Apple has already shifted large parts of its production for the US market to India and Vietnam. Should tariffs arise, the company is well protected. For you, this means no price explosions, no supply bottlenecks – and a CEO who demonstrates that Apple is planning for the long term. (Image: Shutterstock / Ringo Chiu)

Disclaimer: No recommendation for investments

This article does not constitute financial or investment advice. The information contained herein is for journalistic and informational purposes only. Please conduct your own research or consult a financial advisor before making any investment decisions.

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