Apple Stock Plunges 3.7% Amid Tariff Threats

On May 26, 2025, Apple's stock experienced a 3.7% drop in pre-market trading, reflecting the market's response to recent geopolitical tensions and trade policy uncertainties.

President Trump's recent statements on social media have intensified the pressure on Apple. He emphasized his expectation for iPhones sold in the U.S. to be manufactured domestically, threatening a 25% tariff on imports from countries like India. This policy shift has significant implications for Apple's supply chain, which is heavily reliant on Asian manufacturing hubs, particularly in China and India.

Analysts, including renowned Apple expert Ming-Chi Kuo, have weighed in on the potential impact. Kuo suggests that accepting the tariff might be more financially prudent for Apple than relocating its production facilities to the U.S. The complexity and scale of Apple's manufacturing operations in Asia make a swift transition to U.S. production challenging and costly.

The potential tariffs have also affected Apple's suppliers, with Chinese companies like Luxshare, Lens Tech, and Goertek experiencing stock declines. These suppliers are integral to Apple's production ecosystem, and any disruption could have ripple effects across the tech industry.

Apple's stock has been under significant pressure in recent months, with a notable 8% decline in May alone. The company's performance has been the worst among the 'Magnificent Seven' tech giants this year, highlighting the broader market concerns about trade policies and geopolitical risks.