Stocks of Apple’s Chinese suppliers slid on Monday following renewed trade war threats from former U.S. President Donald Trump, who warned of imposing steep tariffs on imported iPhones.
Apple assembler Luxshare Precision Industry Co. Ltd. dropped 2.2%, while Lens Technology Co. Ltd. , a manufacturer of mobile screens, shed 1.8%. Goertek Inc., which produces AirPods, declined by 1.1% amid market jitters over escalating U.S.-China trade tensions.
The market reaction came after Trump, in comments made on Friday, floated the idea of levying a 25% tariff on any iPhones sold—but not manufactured—in the United States, signaling his administration’s desire to bring manufacturing jobs back home.
He also raised the prospect of a 50% tariff starting June 1, stoking fears of a fresh escalation in the U.S.-China trade conflict just weeks after signs of a tentative easing.
Previously, the White House had halted most of the sweeping tariffs announced in April, which were aimed at nearly every country. That pause followed intense investor backlash, with sharp sell-offs in U.S. assets including government bonds and the dollar. However, Trump maintained a 10% baseline tax on most imports, and eventually reduced his initial 145% levy on Chinese goods to 30%.
To minimize exposure to potential tariffs, Apple is expediting plans to relocate the production of most iPhones sold in the U.S. to India by the end of 2026, shifting away from Chinese manufacturing hubs.
Yet, despite this international strategy, moving iPhone production to the United States appears unlikely in the short term. U.S. Commerce Secretary Howard Lutnick said in an interview with CBS last month that manufacturing iPhones in the U.S. would involve automation replacing the labor of “millions and millions of human beings screwing in little, little screws,” adding that it could generate jobs for skilled trades like mechanics and electricians.
However, he later told CNBC that Apple CEO Tim Cook informed him the technology required for such a shift “is not yet available.”
