Apple (AAPL-0.39%) stock fell on Friday after President Donald Trump threatened new tariffs on iPhones made in India, his latest attempt to strong-arm the tech giant to make its flagship product in the U.S.
“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,” Trump said on his social media site Truth Social, referring to Apple’s CEO. “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!”
The shares were down about 2.5% in mid-morning trading. Apple stock is down almost 20% so far this year.
The president’s post Friday appeared to conflict with the administration’s own recent trade actions, including a temporary tariff reduction on Chinese imports intended to ease inflation pressure. Apple had responded to that shift by accelerating shipments from India and fast-tracking local production. What’s more, even commentators on Trump’s own side of the aisle acknowledge the incoherence and illogic of his assertions that Apple move production to the U.S.
“Trump simply doesn’t understand the numbers of how this works at all,” tweeted National Review contributor Pradheep J. Shanker. “There is no way Apple moves production to the US any time soon.”
Trump’s call to reshore Apple’s manufacturing comes as India’s role in Apple’s supply chain expands. Last year, the company assembled $22 billion worth of iPhones in India and exported $17.5 billion. Major suppliers like Foxconn (HNHPF-1.69%) and Tata are investing heavily in the country. The vast majority of iPhones are still made in China, but Apple has been seeking to diversify since the Trump-era trade war and pandemic disruptions.
—Catherine Baab contributed to this article.
The post Apple stock slips as Trump threatens big tariffs on iPhones appeared first on Quartz.
