Tim Cook, chief executive officer of Apple Inc., during the 60th presidential inauguration in the rotunda of the US Capitol in Washington, DC, US, on Monday, Jan. 20, 2025.
Apple's tariff bill has racked up about $1 billion per quarter, but that number should start shrinking following the Supreme Court decision on tariffs.
The Supreme Court on Friday struck down a large chunk of President Donald Trump's far-reaching tariff agenda, delivering a major rebuke of the president's key economic policy.
Apple has paid about $3.3 billion in tariffs since Trump initiated them last year.
The iPhone maker's shares rose about 1% on Friday.
Friday's decision means Apple could start to see lower production costs and keep more of its margins. The company could also face less pressure to move its production away from China and simplify its supply chain.
Apple declined to comment.
The large tariff costs stem from U.S. import duties on products and components manufactured overseas — especially from China and other Asian partners, like Vietnam and India.
When laying out the plan to handle tariffs in May, CEO Tim Cook said Apple is sourcing half of its iPhones for the U.S. from India and most of its other U.S.-bound products like Macs, AirPods and watches from Vietnam, where tariffs were lower than China's at the time.
Friday's decision kills Trump's tariffs on China-made goods, which were at a 47% rate as of December. It also frees Apple up to produce more U.S.-bound products in China, where most of its products to non-U.S. countries have been sourced, instead of diverting to India and Vietnam.
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