Apple Stock Falls After Trump Threatens 25% Tariff

US President Donald Trump increased pressure on Apple CEO Tim Cook as Apple’s stock fell earlier today. Apple shares tumbled after Trump threatened to impose a 25% tariff on the company’s products if they were not made in the US. 

Apple stock falls around 2.7%, and it has dragged down both the S&P 500 and Nasdaq 100. President Trump has explicitly stated that he expects the Apple iPhones to be manufactured in the US, and if that is not the case, a tariff of 25% will be levied on Apple to be paid to the US government. 

As Apple stock falls after this announcement, it is evident that Trump’s announcement comes after Apple’s contractor, Foxconn, plans to invest $1.5 billion in a new manufacturing facility in India to produce display modules for iPhones. Apple is trying to diversify its supply chain by moving key parts of the production outside China to countries like Vietnam, Malaysia, and India.

However, key analysts are skeptical that Apple can produce iPhones in the U.S. anytime soon, without the price of the device skyrocketing. The cost of building the iPhone in the US would inflate the selling price to an extremely high and unrealistic level. It would also take 5-10 years to shift production to the US. Many experts agree that this is an unfeasible fairytale. 

The tariff announcement not only caused Apple stock to fall but also has the capability to reignite the trade war. Trump is also hitting the EU with a 50% tariff as the trade talks are not going anywhere. These potential trade wars can cause geopolitical instability, and the stock market could suffer, as seen by Apple stock falling today.

Apple Stock Falls as Foxconn Announces Plans to Invest in Indian iPhone Manufacturing Unit

Foxconn is a key Apple supplier, and it has just announced plans to invest in a $1.5 billion unit in India for the manufacture of display modules. With growing concerns over tariffs and supply chain vulnerabilities, Apple is taking steps to shift its manufacturing base away from China. 

Foxconn’s Singapore-based subsidiary will acquire 12.7 billion shares in Yuzhan Technology India with a total investment of $1.5 billion. Yuzhan is based in Tamil Nadu and produces electronic components. It is also engaged in the assembly of Apple’s iPhones. Apple expanded its operations in India, and in March, it exported 600 tons of iPhones from India to the US. 

While Apple is trying to realign its global supply chain, it is unable to catch a break with Trump. There are tariffs if the iPhones are made in China, and there are possible tariffs if they are made elsewhere (except the US). 

The Apple stock has been volatile lately, especially with the Apple Siri lawsuit settlement and the Apple iOS 18.5 update that received a lot of criticism. 

The recent threat of a 25% U.S. tariff by President Trump has sent Apple shares tumbling, underscoring the fragile balance between geopolitics and global supply chains. While Apple and its partner Foxconn are diversifying production to India and other markets, on-shore manufacturing in the U.S. remains costly and slow to scale. 

As trade tensions escalate—with potential tariffs on both China and the EU—Apple stock falls and Apple’s stock performance will continue to hinge on the company’s ability to navigate complex international manufacturing and regulatory landscapes without eroding profit margins.

About the Author: Sarah Zimmerman is a seasoned crypto and Web3 news writer passionate about uncovering the latest developments in the digital asset space. With years of hands-on experience covering blockchain innovations, cryptocurrency trends, and decentralized technologies, she strives to deliver insightful and balanced news that empowers her readers. Her work is dedicated to demystifying complex topics and keeping you informed about the ever-evolving world of technology.