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Apple (AAPL) shares fell about 3 % in early buying and selling Friday after President Donald Trump threatened to impose tariffs of no less than 25 % on iPhones manufactured exterior the U.S. The transfer comes after Apple CEO Tim Cook dinner met with Trump on the White Home earlier within the week, in accordance with stories.
“I’ve way back knowledgeable Tim Cook dinner of Apple that I anticipate their iPhone’s that will likely be offered in the US of America will likely be manufactured and in-built the US, not India, or anyplace else,” Trump mentioned in a publish on Reality Social on Friday. “If that isn’t the case, a Tariff of no less than 25% should be paid by Apple to the U.S.”
Apple has discovered itself on the middle of Trump’s commerce conflict as one of many largest tech corporations on the planet that operates a world provide chain. Apple manufactures most iPhones in China, however has moved to shift some manufacturing to India to keep away from just lately introduced tariffs.
Analysts say constructing iPhones within the U.S. is basically not possible within the brief time period.
“It’s laborious to imagine that this involves cross,” Barton Crockett, a senior analyst at Rosenblatt Securities, mentioned on CNBC Friday morning. “To make iPhones at scale on this nation will not be going to occur in an investable timeframe, and definitely not whereas Trump is president.”
Apple mentioned on a latest earnings name that almost all of iPhones shipped to the U.S. will come from India throughout the present quarter, whereas practically all different merchandise — akin to iPads, Macs, Apple Watches and AirPods — will come from Vietnam.
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Trump additionally lashed out at Apple earlier this month.
“I had a bit of downside with Tim Cook dinner yesterday. I mentioned to him, ‘Tim, You’re my buddy. I handled you excellent. You’re coming right here with $500 billion, however now right here you might be constructing throughout India,’” Trump mentioned.
Apple is the worst-performing Magazine 7 inventory in 2025
Apple shares are down about 20 % up to now in 2025, making it the worst-performing member of the so-called Magnificent Seven shares. The corporate faces some of the direct impacts from the brand new tariffs and has additionally struggled to fulfill investor considerations over its synthetic intelligence plans.
| Firm | 2025 efficiency (YTD) |
|---|---|
| Alphabet (GOOGL) | -9.7 % |
| Amazon (AMZN) | -7.4 % |
| Apple (AAPL) | -19.6 % |
| Meta Platforms (META) | 8.7 % |
| Microsoft (MSFT) | 7.9 % |
| Nvidia (NVDA) | -1.1 % |
| Tesla (TSLA) | -15.6 % |
Word: Efficiency information as of Could 22, 2025.
Apple has been highlighting its plan to spend greater than $500 billion within the U.S. over the subsequent 4 years.
“We’re going to be increasing our groups in our amenities in a number of states, together with Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina and Washington, and we’re going to be opening a brand new manufacturing facility for superior server manufacturing in Texas,” Cook dinner mentioned throughout a latest earnings name.
“We additionally supply glass utilized in iPhone from an American firm. All instructed, we now have greater than 9,000 suppliers within the U.S. throughout all 50 states,” Cook dinner added.
Editorial Disclaimer: All traders are suggested to conduct their very own impartial analysis into funding methods earlier than investing resolution. As well as, traders are suggested that previous funding product efficiency is not any assure of future value appreciation.
