Apple Stock Falls After Cook Warns of $900M Tariff Impact

Apple Inc. AAPL shares are trading lower Friday after CEO Tim Cook said that the company expects a $900 million cost impact in the June quarter due to tariffs.

The Details: Cook said during the company's quarterly earnings call that, “Assuming that the current global tariff rates, policies and applications don’t change for the balance of the quarter,” the impact will be $900 million to the company’s costs.

Apple has already begun shifting iPhone production, its most profitable product, to India. Cook stated that he expects most iPhones sold in the U.S. will soon originate from India.

China has long served as the main manufacturing base for iPhones sold in the U.S. Vietnam is set to become the main production hub for nearly all iPads, Macs, Apple Watches and AirPods sold in the U.S.

Apple’s move to diversify its supply chain comes in response to President Donald Trump‘s imposition of tariffs of up to 145% on Chinese imports.

See Also: Dave Ramsey Tells Couple With $300,000 Income They Are ‘Broke People’, Refuses To Help: Here’s Why

AAPL Price Action: At the time of writing, Apple shares are trading 3.79% lower at $205.23, according to data from Benzinga Pro.

Image: via Shutterstock