Apple Stock (AAPL) Plunges as Trump Threatens 25% Tariff on Non-U.S. Made iPhones

Shares in tech giant Apple (AAPL) plunged today after President Trump threatened to impose a 25% tariff on iPhones not made in the U.S.

Build in U.S. Or Else

In a social media post on Truth Social today Trump said that he had long ago informed Apple’s chief executive Tim Cook that he expects “their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a tariff of at least 25% must be paid by Apple to the U.S.,”

This early morning tariff tirade left Apple’s stock down over 3% in pre-market trading.

It appeared to follow reports that Apple’s key supplier Foxconn was continuing its expansion in India despite repeated objections from Trump. The new facility will focus on manufacturing display modules for Apple’s devices and will be located right next to its current iPhone assembly unit near Chennai.

Indian Drive

Apple, whose biggest manufacturing market is China, is looking to up its production numbers in India to better protect itself against present and future tariffs as well as geopolitical issues.

However, Trump is not a fan of the plans and is determined that Apple bring back its production to the U.S.

Apple has set out ambitious $500 million investment plans in the U.S. including AI server production in Texas. But it is clearly not enough for Trump who is committed to increasing U.S. manufacturing capacity and jobs during his presidency.

However, some Wall Street analysts have estimated that moving iPhone production to the U.S. would raise the price of the Apple smartphone by at least 25%.

Is AAPL a Good Stock to Buy Now?

On TipRanks, AAPL has a Moderate Buy consensus based on 17 Buy, 8 Hold and 4 Sell ratings. Its highest price target is $300. AAPL stock’s consensus price target is $228.65 implying an 13.55% upside.

See more AAPL analyst ratings