A recent U.S. Supreme Court decision striking down a key component of former President Donald Trump's tariff policy could lead to a reduction in the quarterly tariff expenses of approximately $1 billion incurred by Apple. The ruling, delivered on Friday, represents a significant setback to one of Trump's core economic initiatives. Since the implementation of the tariffs last year, Apple has paid a cumulative total of around $3.3 billion.
Following the announcement, Apple's stock price increased by approximately 1%. The decision is expected to enable the company to lower its production costs and retain a larger portion of its profits. Apple has declined to comment on the matter.
The substantial tariff costs primarily stem from U.S. import duties on products and components manufactured overseas, particularly those from Asian partners such as Vietnam and India. In May, while outlining strategies to address the tariffs, CEO Tim Cook stated that half of the iPhones destined for the U.S. market are produced in India, with the majority of Macs, AirPods, and Apple Watches sold in the U.S. originating from Vietnam. During an earnings call, Cook emphasized that Apple has largely absorbed these tariff costs itself to prevent sudden price increases for consumers.
The Supreme Court ruled 6-3 that the tariffs unilaterally imposed by Trump were unlawful. This ruling implies that the U.S. government may be required to refund over $175 billion in tariffs to importers. A critical question remains whether Apple will actively seek to reclaim the tariffs it has already paid or choose to bear the costs to avoid provoking the president.
At a press conference on Friday afternoon, Trump, when asked about the Supreme Court's decision, did not commit to refunding U.S. companies that had paid the tariffs and indicated that he anticipates "years of litigation" concerning the refunds.
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