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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 a minimum of 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 keeping with experiences.
“I’ve way back knowledgeable Tim Cook dinner of Apple that I anticipate their iPhone’s that shall be bought in the US of America shall be manufactured and in-built the US, not India, or anyplace else,” Trump mentioned in a submit on Fact Social on Friday. “If that’s not the case, a Tariff of a minimum of 25% have to 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 earth 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 not too long ago introduced tariffs.
Analysts say constructing iPhones within the U.S. is basically unimaginable within the quick time period.
“It’s exhausting to consider that this involves go,” Barton Crockett, a senior analyst at Rosenblatt Securities, mentioned on CNBC Friday morning. “To make iPhones at scale on this nation just isn’t going to occur in an investable time-frame, and positively 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 through the present quarter, whereas almost all different merchandise — resembling 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 just a little drawback with Tim Cook dinner yesterday. I mentioned to him, ‘Tim, You’re my good friend. I handled you excellent. You’re coming right here with $500 billion, however now right here you’re constructing throughout India,’” Trump mentioned.
Apple is the worst-performing Magazine 7 inventory in 2025
Apple shares are down about 20 % thus far 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 issues 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 % |
Notice: Efficiency knowledge as of Might 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 services 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 unit 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 advised, we have now 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 isn’t any assure of future worth appreciation.
