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Donald Trump just fired a shot across Apple's (NASDAQ:AAPL) bow and markets flinched. In a fiery Truth Social post on Friday, the former U.S. President warned that if iPhones sold in America aren't made on American soil, Apple could be hit with a 25% tariff. Trump claimed he had already told Tim Cook to stop shifting production to India and "anyplace else," suggesting a potential policy reversal if he's reelected.
Investors didn't take it lightly. Apple stock sank 3.4% in the premarket trading at 7.49am, dragging Nasdaq (QQQ) futures into the red. The sell-off highlights just how sensitive markets remain to tariff talk especially when it comes to tech giants with deep global supply chains. Despite Apple's multi-billion-dollar U.S. investment pledges, the company still relies heavily on China and has recently ramped up iPhone manufacturing in India a strategic hedge that now faces political headwinds.
Apple hasn't commented yet, but the message from Trump is loud and clear: bring jobs back or pay the price. A 25% tariff would hit Apple's margins or force it to pass costs to consumers neither of which would sit well with shareholders. For now, this is just talk. But with the 2024 race heating up and reshoring back in the spotlight, Apple investors may want to start scenario planning.
This article first appeared on GuruFocus.