Saturday, May 24, 2025 -Apple shares dipped after former U.S. President Donald Trump threatened to impose a 25 percent tariff on all Apple products not manufactured in the United States.
The threat, issued via Trump’s Truth Social platform on
Friday, initially sent Apple’s stock down by 3.5 percent in futures trading,
though it later recovered by 2.8 percent during early market hours.
Trump’s statement targeted Apple’s global manufacturing
strategy, specifically its shift of iPhone production to India. “I have long
ago informed Tim Cook of Apple that I expect their iPhones that will be sold in
the United States of America will be manufactured and built in the United
States, not India, or anyplace else,” Trump posted. “If that is not the case, a
Tariff of at least 25% must be paid by Apple to the U.S.”
The proposal sparked concern among investors and analysts,
with tech sector observers calling the demand unrealistic. Dan Ives, a senior
analyst at Wedbush Securities, said that relocating iPhone manufacturing to the
U.S. could take five to ten years and would likely push the price of an iPhone
to around $3,500. He described the idea as a “fairy tale.”
Barton Crockett, a senior analyst with Rosenblatt
Securities, echoed the sentiment in an appearance on CNBC’s Squawk Box,
describing Trump’s proposal as “asking for the impossible.”
Trump's comments appear to be a continuation of his
long-standing trade grievances with China, which previously led Apple to
consider diversifying its production footprint. Apple CEO Tim Cook has
indicated that the company is expanding manufacturing in India as part of that
strategy. Trump, however, expressed displeasure with this move during a visit
to Qatar last week, stating, “I had a little problem with Tim Cook… I said to
him, ‘Tim, you’re my friend. I treated you very good. You’re coming in with $500
billion.’ But now I hear you’re building all over India. I don’t want you
building in India.”
In the same Truth Social post, Trump extended his trade
threats to the European Union, accusing the bloc of exploiting the U.S. He
proposed a 50 percent tariff on all imports from the EU starting June 1, 2025,
unless the products are made in the United States. “Our discussions with them
are going nowhere!” Trump wrote. “There is no Tariff if the product is built or
manufactured in the United States.”
0 Comments