The power of the president’s tweets is unmatched, with a single post threatening to put a 25% tariff on Apple products tanking the company’s stock.
It’s no secret: President Trump wants to Apple to make iPhones in the US. Unfortunately, trade discussions have not gone his way, which is why he took to social media in hopes of putting on the pressure.
Well, the pressure is on, with the Truth Social post almost immediately causing Apple stock to drop.
Trump Threatens Apple With Tariffs
Where else but on social media would President Trump announce his possible plans to put a 25% tariffs on Apple if that company doesn’t start manufacturing its many devices — including the popular iPhone — in the US.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s 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. Thank your for your attention to this matter!” – President Trump on Truth Social
Trump also announced a blanket 50% tariff on all imports from the EU, so clearly the president is serious about making this whole “made in America” thing a reality.
Apple Stock Drops in Response to Tariff Threat
Tariffs have been putting a squeeze on a lot of companies over the last few months, and Apple has been no different.
As a result of the tariff threat from Trump, Apple stock fell 3%, which represents an approximate loss of $100 billion for the tech company.
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Apple wasn’t the only company that felt the brunt of the tariff threat either. On Friday, broader markets like the S&P saw a 1% dip, with virtually the entire tech industry seeing a drop just before the weekend.
Is Building iPhones in the US a Possibility?
With Trump fighting tooth and nail to get iPhone production back in the old US of A, it’s worth asking: Is this kind of trade deal even possible?
In all likelihood, no. Apple has been investing heavily in China manufacturing over the last few decades, and with tariffs hitting the country more than most, Apple has made a concerted effort to build manufacturing plants in India instead, not the US.
Economists have also noted that the cost associated with building iPhones in the US would make the popular smartphone substantially more expensive, with some estimates as high as $3,500 per device.
Suffice to say, Trump has an uphill battle when it comes to getting Apple to start manufacturing in the US, but we know he rarely shies away from this kind of fight.
