Apple Supplier Stocks Tumble After Trump’s New Tariff Threats
Chinese-listed Apple suppliers saw significant declines on Monday following former U.S. President Donald Trump’s threat to impose new tariffs on imported iPhones, reigniting fears of a fresh round of the U.S.-China trade war.
Shares of Luxshare Precision Industry, a key iPhone assembler and AirPods manufacturer, dropped 2.2%, while screen maker Lens Technology fell 1.8%. Goertek, another AirPods supplier, declined by 1.1%. Luxshare, in particular, hit its limit down for three consecutive trading days, with trading volumes exceeding 3 billion yuan.
Trump Pushes for iPhones Made in the U.S.
In a speech on Friday, Trump proposed a 25% tariff on any iPhones not manufactured in the U.S., escalating to 50% by June 1. This was part of his broader campaign to bring manufacturing jobs back to American soil.
While the White House recently paused sweeping tariffs introduced in early April after a market backlash, Trump maintained a 10% baseline tax on most imports and reduced an earlier 145% tariff on Chinese goods to 30%.
Commerce Secretary Howard Lutnick told CBS that the goal is to eventually automate iPhone assembly in the U.S., replacing manual labor with skilled trade jobs. However, Apple CEO Tim Cook reportedly responded that such automation isn’t yet technically feasible.
Apple’s Diversification Isn’t Enough—Yet
Despite years of effort to reduce its dependency on China, Apple remains vulnerable. According to Tech in Asia, 85% of iPhones are still made in China, though Apple has made progress in shifting production.
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50% of iPhones sold in the U.S. are now produced in India.
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Foxconn is investing $1.5 billion in a new Indian factory to support this shift.
However, these moves fall short of Trump’s demand for domestic U.S. production, meaning tariff risks still loom large.
Market and Strategic Implications
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Investor Reaction: The threat of escalating tariffs has once again rattled global markets, especially in the tech sector.
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China Suppliers Hit Hard: Luxshare, Lens Tech, and Goertek are seeing declining demand expectations.
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India May Benefit: Foxconn and Apple’s Indian operations may gain long-term strategic advantage.
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U.S. Production Still Distant: Any meaningful transition to U.S.-based iPhone manufacturing remains a multi-year effort, dependent on automation and major capital investment.
Conclusion
Trump’s renewed tariff threats highlight the fragility of Apple’s global supply chain and the volatility tied to geopolitical moves. While Apple is accelerating its shift away from China, full protection from tariff risks remains elusive—especially if the U.S. government insists on bringing production home.
As global trade tensions rise once again, investors, manufacturers, and policymakers must brace for further uncertainty in the months ahead.