Apple Stock Price Down After Trump iPhone Tariff Threat
Apple stock price slipped over 2% after Donald Trump threatened a 25% tariff on iPhones not manufactured in the U.S., reigniting the reshoring debate.
Summary
- Trump demands iPhones sold in the U.S. be made in the U.S., not India.
- Apple’s stock dropped from $201.36 to $194 after his Truth Social post.
- Analysts say onshoring production could double iPhone prices.
Trump’s iPhone Tariff Sparks Market Reaction
Apple stock price dipped more than 2% Friday morning following Trump’s tariff threat. The former president posted on Truth Social, reiterating his expectation that iPhones sold in the U.S. should be produced domestically—or face a 25% tariff.
“If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.,” Trump wrote. The post triggered an immediate reaction in the markets, with Apple stock falling from $201.36 to $194 before slightly recovering to $196.38 by mid-morning.
Why Apple Produces iPhones Overseas
Most iPhones are manufactured in China, with production expanding to India and Vietnam to mitigate geopolitical risk and tariffs. Apple CEO Tim Cook recently confirmed that the company aims to source a majority of U.S.-sold iPhones from India by 2026.
Despite that strategy, Trump continues to pressure Apple to move manufacturing to American soil. During a recent meeting in Qatar, he expressed frustration over Apple’s production shift from China to India instead of the U.S.
Analysts Say U.S.-Made iPhones Unrealistic
Experts widely agree that U.S.-based iPhone production is financially unfeasible. Dan Ives of Wedbush Securities said manufacturing iPhones in the U.S. could increase the price to $3,500 due to labor and infrastructure costs.
Evercore ISI analysts echoed that sentiment, stating even with a 50% tariff, domestic production still wouldn’t make financial sense. Labor costs alone would lead to over a 50% increase in manufacturing expenses.
Apple Faces Complex Trade and Supply Chain Decisions
Trump’s comments come as Apple navigates complex global trade dynamics. The company faces rising costs from tariffs on Chinese imports, while trying to diversify production to minimize future disruption. Apple’s $500 billion investment in the U.S., which includes server production and data centers, is part of a broader strategy to appease policymakers without moving core iPhone production stateside.
✅ Pros
- Pushes Apple to consider U.S. job creation through investments.
- Focuses attention on supply chain security for key tech components.
- Tariff threat could stimulate domestic semiconductor production.
❌ Cons
- iPhone prices could skyrocket to $3,500 if built in the U.S.
- Apple stock volatility may hurt investor confidence.
- Building U.S. infrastructure would take 5–10 years and billions in investment.
Final Verdict
Trump’s renewed threat to tariff Apple highlights the political and economic tension around global supply chains. While reshoring iPhone production appeals to domestic manufacturing advocates, experts say the financial burden makes it unlikely. Meanwhile, Apple must balance policy pressures with business efficiency to maintain its market dominance and stock performance.
FAQs
Q: Why did Apple stock price drop?
A: It fell over 2% after Trump threatened a 25% tariff on iPhones not made in the U.S., raising cost concerns.
Q: How much would an iPhone cost if made in the U.S.?
A: Analysts estimate up to $3,500 due to higher labor and infrastructure costs.
Q: Is Apple planning to manufacture iPhones in the U.S.?
A: No. Apple continues to expand in India and Vietnam. Full domestic production is seen as unrealistic by experts.
