Apple shares are down at market open in the present day after President Trump threatened new tariffs except the corporate begins constructing iPhones in the USA.
Not India, or anyplace else
In a submit on TruthSocial, Trump mentioned he had “way back knowledgeable” Tim Cook dinner that iPhones bought within the U.S. ought to be made domestically, “not India, or anyplace else”. He added that, if that doesn’t occur, Apple will face a 25% tariff.
The corporate has not too long ago shifted manufacturing to India, Vietnam, and Brazil, as a part of a broader effort to scale back its reliance on China.
Apple hasn’t responded to the assertion, however the market already has: AAPL opened down 2.5% this morning. The inventory is now hovering round $196, including to what had already been a nasty week.
If Trump’s menace materializes, the influence received’t cease at Wall Avenue. A 25% tariff on imported iPhones would virtually actually result in greater costs for customers within the U.S., with Apple both passing on the associated fee or absorbing a major margin hit. Both situation may dent profitability and squeeze the corporate from each ends.
Again on excessive alert
Throughout Apple’s latest quarterly earnings name on Might 1, 2025, CEO Tim Cook dinner addressed considerations about potential iPhone value will increase amid escalating U.S. tariffs.
On the time, he acknowledged that tariffs may add roughly $900 million to Apple’s prices within the upcoming quarter. Whereas Cook dinner mentioned the corporate had been absorbing these prices, he didn’t rule out future value hikes.
Nonetheless, Cook dinner famous that the scenario was fluid, and future commerce insurance policies may necessitate changes in pricing methods. Seems to be like we is perhaps there.
Whether or not the menace turns into coverage stays to be seen. Throughout Trump’s first time period, Apple managed to keep away from the worst of his tariffs by behind-the-scenes negotiations. However this time, the tone feels completely different.
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