Apple is facing considerable tariff costs this quarter, projected to total $1.1 billion. CEO Tim Cook revealed these estimates, based on existing rates and policies, to investors during an earnings call on Thursday. This rise comes amid a continuing trade conflict between China and the U.S. government.

In the quarter ending in June, tariffs incurred by Apple amounted to $800 million, which was less than previously anticipated. “Most of the tariffs that we incurred were the IEEPA tariffs that were applied early in the year, tied to China,” Cook mentioned, according to The Verge. “There are numerous factors that could shift, including tariff rates,” the CEO continued.

Earlier, President Donald Trump explicitly threatened Tim Cook and Apple with increased tariffs on iPhones in his attempt to relocate iPhone manufacturing to the United States. Analysts consider this highly improbable, as the U.S. lacks the necessary infrastructure to produce flagship smartphones.

During the Thursday earnings call, Cook also announced that the company achieved a “June quarter revenue record,” with growth across its iPhone and Mac products and services segments. He indicated that the results were “better than anticipated.”

In spite of economic instability, a disappointing July jobs report, and the impending threat of tariffs, tech firms like Apple, Meta, and Reddit continue to report robust revenue this quarter, as Mashable noted on Friday.