Trump’s Tariff Extension Gives Apple Breathing Room

Just hours before steep new tariffs on Chinese goods were set to take effect, President Trump signed an executive order extending the pause by another 90 days — a move that’s especially favorable for Apple.

Tariff Spike Delayed to Mid-November

The planned 145% tariff increase is now pushed to mid-November, allowing Apple to complete its fiscal Q4, ending in September, without facing the new cost burden. This period will likely cover the early sales weeks of the upcoming iPhone 17.

Boost for iPhone Supply Flexibility

While Apple has been shifting more U.S.-bound iPhone production to India, the extension gives the company more leeway to source units from China if needed to meet demand.

Cook’s Earnings Call Warning

During Apple’s Q3 2025 earnings call, CEO Tim Cook said tariffs had already cost Apple $800 million for the quarter, slightly less than projected. However, he cautioned that Q4 costs could rise by $1.1 billion if no policy changes occurred. The extension directly reduces that risk.

Market Reaction

Interestingly, Apple’s stock showed little movement after the announcement, suggesting investors had anticipated the decision. Still, the next trading day could reveal a more significant reaction.

Looking Ahead

The extension gives Apple a smoother runway into its most critical sales season. If the tariff hike is delayed again in mid-November — or canceled altogether — Apple could be in an even stronger position heading into the holiday quarter.