Apple Stock Falls From Trump Tariff Threats

Apple Stock Shares are falling today

Shares of Apple Inc. stock (AAPL -2.76) continues to fall today due to President Trump’s threats to hit the iPhone maker with tariffs if they don’t bring their iPhone production to the U.S. Trump threatened to hit them with a 25% tariff and he has every intent to enforce this threat. Currently, Apple has chosen to have their iPhone’s produced in countries such as India and Vietnam to save on costs for creating their iPhone’s.

But it’s unknown what Trump’s expectations are for Apple since it would take years to move iPhone production to the U.S. and it would be a huge financial strain on the company. Additionally, the cost would fall on consumers as this would drive up the purchase price of iPhones and other Apple products by a VERY significant amount.

-We have seen multiple announcements by different companies that they are expecting prices to increase for consumers due to Trump’s tariffs (Amazon, Walmart, Target, Best Buy just to name a few).-

To bring iPhone production to the U.S., it would still cost a lot more than the 25% tariff that Trump is threatening. It would cost Apple at least 50% more money for manufacturing cost to bring production to the U.S., considering cost of labor, parts and other factors. Unless Apple Chief Tim Cook can negotiate some type of miracle deal with Trump, it will be a losing situation for Apple either way.

Apple currently does not produce any iPhone’s in the U.S. and has been trying to move their production out of China due to tariffs on goods imported from the country and rising tensions with political issues amongst many other factors. Apple has yet to respond how they intend to address Trump’s tariff threats aside from increasing the prices of their products.