Apple’s stock dropped Friday after President Donald Trump threatened to slap the company with a hefty 25 percent tariff on all products unless it moves iPhone manufacturing to the U.S.
The tech giant saw shares fall 3 percent as the markets closed, down around 6 points, following the president’s threat against the company in a Truth Social post. Overall the Dow Jones dropped by about 250 points on fears after Trump’s Friday tariff threats against apple and the European Union.
In premarket trading, Apple’s shares were down 3.5 percent but bounced back 2.8 percent in early trading Friday morning.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s [sic] 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. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
Trump made the threats after he met with Apple CEO Tim Cook at the White House Wednesday, according to the Wall Street Journal.
Wall Street tech analyst Dan Ives of Wedbush said Trump’s proposal to manufacture iPhones in the U.S. was a “fairy tale.”
The analyst estimated it would take between 5 to 10 years and raise the price of an iPhone to $3,500. “[It’s] not realistic in our view,” Ives said.
Barton Crockett, a senior analyst with Rosenblatt Securities, told CNBC’s Squawk Box that Trump is “asking for the impossible.”
Cook said the company was looking to move iPhone manufacturing from China to India following the president’s tariff war with the world’s second-largest economy, which has not gone down well with Trump.
He called Cook out during last week’s trip to the Middle East. “I had a little problem with Tim Cook,” Trump said in Qatar. “I said to him, ‘Tim, you’re my friend. I treated you very good. You’re coming in with $500 billion.’ But now I hear you’re building all over India. I don’t want you building in India.’”
Trump also threatened a 50 percent tax on all imports from the European Union and claimed the organization’s “primary purpose” has been “taking advantage of the United States.”
“Our discussions with them are going nowhere!” he fumed on Truth Social Friday. “Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States.”
Treasury Secretary Scott Bessent defended Trump’s threats against Apple and claimed that the president is “trying to light a fire” under the company and the EU.
“Again, the president is trying to bring back precision manufacturing to the U.S.,” Bessent told Fox News’ America’s Newsroom Friday. “And I think that one of our greatest vulnerabilities is this external production, especially in semiconductors, and a large part of Apple's components are in semiconductors, so we would like to have Apple help us make the semiconductor supply chain more secure.”
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