Trump's latest tariff threats reignite trade policy concerns impacting economic growth

As Trump threatens Apple with tariffs, market volatility rises, with shares dropping nearly 4%. Analysts warn that 'Made in the USA' iPhones could lead to significantly higher prices.

Sources:
MintDeccanheraldReuters+3
Updated 1h ago
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Sources: MintDeccanheraldInvestopedia+2
President Donald Trump's recent tariff threats have sparked renewed concerns over trade policy and its implications for economic growth. Trump warned Apple of a 25% tariff if iPhones are not manufactured in the U.S., leading to a 2.5% drop in Apple's shares and a broader market decline.

The Dow Jones Industrial Average fell by 0.9%, while the S&P 500 and Nasdaq dropped 1.1% and 1.4%, respectively, as investors reacted to Trump's unpredictable trade stance. Analysts suggest that the push for 'Made in the USA' iPhones is unrealistic and could significantly raise prices.

Trump's comments come amid ongoing tensions with the European Union, where he proposed a 50% import duty on European goods starting June 1. This escalation in trade rhetoric has left many worried about the potential impact on corporate profits and the overall economy.

Apple sells over 60 million iPhones in the U.S. annually, with about 80% currently manufactured in China. The company's stock has been on a downward trend, reflecting investor anxiety over the implications of Trump's trade policies.
Sources: MintInvestopedia
President Donald Trump's latest tariff threats, including a potential 25% levy on Apple if it doesn't manufacture iPhones in the U.S., have reignited trade policy concerns, causing stock market declines and raising fears about economic growth and corporate profits amid ongoing global trade tensions.
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The Headline

Trump's tariff threats impact Apple and markets

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.
Donald Trump
US President
Key Facts
  • Trump threatened Apple Inc. with a 25% tariff if it does not manufacture its iPhones in the US, increasing pressure on the tech giant.Mint
  • Following Trump's warning, Apple's shares dropped 2.5% in premarket trading, impacting US stock index futures.Deccanherald
  • Analysts express skepticism about the feasibility of 'Made in the USA' iPhones, suggesting they would be notably more expensive.Axios
  • Trump's comments have reignited concerns about trade policy and its potential impact on economic growth and corporate profits.Investopedia1
  • Apple sells over 60 million iPhones in the US annually, with roughly 80% of them made in China currently.News18
Key Stats at a Glance
Tariff threatened by Trump on Apple
25%
Mint
Drop in Apple's shares
2.5%
Deccanherald
Annual iPhone sales in the US
60 million
News18
Percentage of iPhones made in China
80%
News18

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Background Context

Context on trade policy and market reactions

Key Facts
  • Global stocks and the dollar tumbled after Trump's unexpected trade bombshell, with the Dow Jones Industrial Average down 0.9% shortly after the opening bell.Investopedia1
  • Apple is positioning India as an alternative manufacturing base amid Trump's tariffs on China, raising supply-chain concerns.Deccanherald
Key Stats at a Glance
Drop in Dow Jones Industrial Average
0.9%
1
Drop in S&P 500
1.1%
1
Drop in Nasdaq Composite
1.4%
1
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