Apple Plunges 3.56% on Trump's Tariff Threat

On May 23, 2025, Apple's stock experienced a significant drop of 3.56% during pre-market trading.

This decline was primarily driven by President Trump's recent threat to impose a 25% tariff on Apple products if they are not manufactured in the United States. Trump's statement, made on his social media platform, emphasized his expectation that iPhones sold in the U.S. should be produced domestically rather than in countries like India. This announcement has raised concerns among investors about the potential impact on Apple's supply chain and profitability.

Apple's recent financial performance has shown mixed results. While the company reported a total revenue of $954 billion for the second quarter, with iPhone sales contributing $468 billion, the outlook for future quarters remains uncertain. The company's guidance for the third quarter indicates a lower-than-expected revenue growth, which has contributed to the market's cautious stance.

Additionally, the ongoing trade tensions and the potential for increased tariffs have added to the market's volatility. Investors are closely monitoring the situation, as any further escalation in trade disputes could have a significant impact on Apple's stock performance. The company's ability to navigate these challenges will be crucial in determining its future trajectory.