2 Luxury Goods Companies With Looming Tariff Costs. Should Investors Be Worried?

Group 1: Apple Inc. - Apple has incurred significant tariff costs, paying $800 million in tariffs during the June quarter and expecting $1.1 billion in the September quarter, which, while a small proportion of total profit, is still notable [1][9] - CEO Tim Cook has pledged to invest $600 billion in the U.S. over the next five years, which may help Apple mitigate some tariff impacts [3][9] - The company is facing uncertainty regarding future tariffs, especially with ongoing trade negotiations with China and potential 100% tariffs on foreign-made semiconductors [8][10] Group 2: RH (Restoration Hardware) - RH's stock has declined over 50% in 2025, impacted by new furniture-specific tariffs announced by President Trump, which include a 30% duty on upholstered furniture and a 50% tariff on kitchen cabinets [12][14] - The company plans to produce 52% of its upholstered furniture in the U.S. by the end of the fiscal year, which may help mitigate some tariff impacts [16] - Despite the luxury brand's pricing power, the slow housing market poses challenges for passing on costs to consumers, leading to uncertainty about the overall tariff impact on RH [18][19]