Apple, Inc. AAPL shares are trading lower Monday on continued weakness after CEO Tim Cook said the company anticipates a $900 million tariff-related hit in the June quarter.

The Details: Cook said during the company’s second-quarter earnings call that, “Assuming that the current global tariff rates, policies and applications don’t change for the balance of the quarter,” Apple expects a $900 million increase in costs.

Cook said the majority of iPhones sold in the US will eventually be made in India, where Apple has already begun shifting production of its most profitable product.

China has long served as the primary manufacturing location for iPhones sold in the U.S. Vietnam is set to become the main production hub for Apple’s other products, including iPads, Macs, Apple Watches and AirPods sold in the US.

The company’s supply chain shift follows President Donald Trump‘s move to impose tariffs of up to 145% on Chinese imports.

What Else: According to Bloomberg, Apple is planning to issue investment-grade bonds in up to four parts. The 10-year bonds are expected to price about 0.7 percentage points above Treasuries.

It would be Apple’s first bond issuance since 2023.

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AAPL Price Action: At the time of writing, Apple stock is trading 2.45% lower at $200.31, according to data from Benzinga Pro.

Image: Courtesy of Apple, Inc.