Apple stock sinks after Trump threatens 25% tariffs on iPhone maker
Apple (AAPL) stock fell as much as 3% in early trading Friday after President Trump said the company must pay at least a 25% tariff, unless its iPhones are made in the US.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s 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 said in a Truth Social post on Friday morning.
“If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
Apple has been caught in the crosshairs of President Trump’s tariff policy, which seeks to bring manufacturing back to the US and away from places like China.
In its quarterly earnings call earlier this month, the company revealed it expects to face a $900 million headwind as a result of tariffs in the current quarter.
The company is working to diversify its supply chain, with heavy investments in India. The US has placed tariffs on those countries, as well, although they’re temporarily on hold as the Trump administration negotiates potential trade deals.
In addition to sourcing the “majority” of iPhones sold in the US this quarter from India, CEO Tim Cook said on the earnings call that “almost all” iPad, Mac, Apple Watch, and AirPods products would be sourced from Vietnam. Outside of the US, most product sales will have China as their country of origin.
As for the future, Cook said, “I wouldn’t want to predict the mix of production in the future.”
Read more: The latest news and updates on Trump’s tariffs
Wall Street has warned that making devices in the US would result in much more expensive phones for customers.
“The pressure from Trump Administration on Apple to build iPhone production in the US as we have discussed this would result in an iPhone price point that is a non-starter for Cupertino and translate into iPhone prices of ~$3,500 if it was made in the US which is not realistic as this would take 5-10 years to shift production to the US,” Wedbush analyst Dan Ives said in a note Friday. “We believe the concept of Apple producing iPhones in the US is a fairy tale that is not feasible.”
Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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