Former President Donald Trump’s incendiary call to action against Apple Inc. has sent the tech giant’s stock tumbling. Consequently, shares have dipped under the $200 threshold. Trump has already made his displeasure known with Apple and its CEO, Tim Cook, after their Wednesday meeting in the Oval Office. Consequently, there was a huge backlash. Investors and market analysts are rightly alarmed at the repercussions from these comments. Trump’s frequent threats of high tariffs on EU imports have upped the ante of those fears.
In a press briefing that day, Trump took the opportunity to vent his frustration with Apple and underlined one key grievance against Cook. This is particularly true when neither the White House nor Apple has shared the details of their meeting publicly. In Trump’s case, their intent was a foregone conclusion. In retaliation, Trump recently announced a 50% tariff on all EU imports, effective June 1. He argues that this move is crucial for fighting back against bad trade practices.
As part of the broader strategy in his comments, Trump claimed that EU monetary policy is explicitly an attempt to rip off the U.S. He highlighted a huge trade imbalance with the EU, saying it was $235 million in the wrong direction. In reality, the U.S. trade deficit for tangible goods with the EU just reached approximately $235.6 billion in 2024. This further illustrates the huge trade deficit between the two areas.
Apple’s stock took a big hit from Trump’s comments, with shares down 4 percent in premarket trading on Friday. This drop could be particularly worrisome given the fact that we’re currently in the middle of a tumultuous market climate for tech stocks. Apple’s 52-week low is $129. Analysts are saying the next levels of support for Apple’s shares are at $180 and $164. The most recent drop occurred among those boundaries and just under the $170 mark. That certainly calls into question continued investor confidence in the company going forward.
Ever since he was a candidate, Trump has been demanding that Apple make all its iPhones in the U.S. He makes the case for not outsourcing production to places like India. He made this clear in his statement:
“I have long ago informed [CEO] 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. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.” – Trump
The former president elaborated on his thoughts regarding trade practices in general, criticizing various factors such as:
“Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more.” – Trump
The combination of Trump’s criticisms and threats has raised alarms among investors, particularly concerning potential impacts on Apple’s operations and pricing strategies. As a leading player in the tech industry, any significant changes in tariffs could affect not only Apple but its supply chain and market position.