Chinese suppliers tied to Apple faced immediate losses on Monday after U.S. President Donald Trump reignited threats of heavy tariffs on imported iPhones.
His latest comments have revived fears of another trade challenge between the United States and China, pushing investor confidence down and triggering a fresh sell-off across key technology stocks.
Luxshare, a major assembler of iPhones and producer of AirPods, dropped 2.2%. Lens Technology, which provides mobile screens, declined 1.8%, while Goertek, another AirPods manufacturer, fell 1.1%.
These dips are directly linked to Trump’s Friday warning that iPhones not made in the U.S. could face a 25% import tariff.
And he didn’t stop there. Trump also floated the idea of a 50% tariff beginning June 1, adding more pressure to global supply chains and increasing concerns that the trade truce of the last few weeks could unravel.
The U.S. had already slapped tariffs on imports earlier this year. Although the White House later stepped back, after a market issue shook U.S. bonds and the dollar, the 10% baseline import tax remains.
Again, Trump had imposed a 145% tariff on Chinese products, which was later scaled down to 30%.
The impacts weren’t limited to Apple’s supply chain. China’s main stock indices also reflected investor anxiety. The Hang Seng Index in Hong Kong dropped by 1%, while the CSI 300, which tracks large-cap stocks in mainland China, slid 0.7%.
Apple, anticipating the risks, is already acting. The company is making plans to manufacture most of its U.S.-sold iPhones in India by the end of 2026.
The goal is to insulate itself from the geopolitical tug-of-war between Washington and Beijing. But shifting production isn’t simple, and bringing it to the U.S. may be even harder.
Commerce Secretary Howard Lutnick had claimed last month in an interview with CBS: “The work of millions and millions of human beings screwing in little, little screws to make iPhones will come to the United States and be automated, creating jobs for skilled trade workers such as mechanics and electricians.”
However, when asked later by CNBC, he admitted that Apple CEO Tim Cook told him the necessary automation technology just doesn’t exist yet.
So what now? We’re looking at a scenario where rhetoric can move billions in market value within hours, and where companies are being forced to reconsider how and where they make their most iconic products. Apple is trying to outpace the politics, but the rules keep changing.
