WASHINGTON — The United States Supreme Court on Friday struck down a key component of former President Donald Trump’s trade policy, a decision that could lead to reduced costs for major American companies like Apple. The ruling has prompted Trump to announce plans for a new round of tariffs, potentially setting the stage for further legal battles.
The Supreme Court’s decision invalidates aspects of Trump’s broad tariff implementation, a move that has been a significant challenge to his economic policies. According to reports, Apple has been spending approximately $1 billion per quarter on tariffs, and that figure could now begin to decrease. Since the tariffs were initiated last year, Apple has cumulatively paid around $3 billion in tariffs.
Shares of Apple rose by roughly 1% on Friday following the court’s announcement. The ruling suggests that Apple may be able to lower its production costs and retain a larger portion of its profits.
The high costs of tariffs are largely due to import duties levied on products and components manufactured overseas, particularly in countries like Vietnam and India. Apple CEO Tim Cook stated in May that half of the iPhones bound for the U.S. Market are produced in India, while the majority of Macs, AirPods, and Apple Watches sold in the U.S. Originate from Vietnam.
Cook has emphasized that Apple has largely absorbed the tariff costs to avoid sudden price increases for consumers. The Supreme Court ruled 6-3 against Trump’s unilateral imposition of the tariffs, potentially requiring the U.S. Government to refund over $175 billion in tariffs to importers.
A key question now is whether Apple will actively seek reimbursement for tariffs already paid or choose to absorb the costs to avoid antagonizing the former president. During a press conference on Friday, Trump did not commit to refunding payments to U.S. Companies and indicated he anticipates “years of litigation” regarding the issue.
The decision underscores the ongoing debate over trade policy and its impact on American businesses and the global economy. It remains to be seen how the Biden administration will respond to the ruling and whether Trump will follow through on his threat of new tariffs.
Apple declined to comment on the ruling.
