In This Article
- Background of Trump Tariffs on China and its Effects on Apple Stock
- Apple-linked Chinese Stocks Slump after Trump’s New iPhone Tariff Threat
On Monday, the China-listed suppliers for the Apple company lost their stock value because of the threats of President Donald Trump on the imported phones. This has not only affected Apple’s stock but mainly the Chinese companies supplying the parts to the Apple company.
Luxshare, a Chinese company working for Apple to manufacture the iPods and iPhones, faced a 2.2% fall in the stock value. Similarly, Lens Tech, the Chinese screen-making company, lost 1.8% of its stock. The third company is Goertek, which makes AirPods and faced a 1.1% decline.
Background of Trump Tariffs on China and its Effects on Apple Stock
The US-China tariff war is not new and started in 2018 when President Donald Trump imposed tariffs on Chinese goods, so China retaliated against the US tariffs. The war has significantly impacted Apple because it mainly relies on the China imports.
Recently, when Trump held the presidential seat for the second time, he again imposed heavy tariffs on worldwide imports, particularly from China. As a result, Apple is struggling to shift its production from China, and this is seriously impacting Apple’s stock.
Other effects are the slow production, lower market value, high cost, market uncertainty, and geopolitical risks. Trump has a strong urge to compel Apple to manufacture its products in the US, and this is the most frustrating problem for Apple nowadays.
Apple-linked Chinese Stocks Slump after Trump’s New iPhone Tariff Threat
On Friday, Trump threatened Samsung and Apple to ratchet up the tariff war again, and Apple is facing stock fluctuations. According to Trump, if Apple does not manufacture all its products within the US, then he may slap a 25% levy on any Apple gadget sold in the US but made in China.
He says that he wants to create jobs for the US and wants the company to create all the products here in the US. The warning is spooking the investors working on the Chinese firms making Apple products; therefore, every company connected to Apple is facing a stock fall.
The war is because of geopolitical dominance. China is working great in artificial intelligence, providing the best AI models, beating those represented by the US companies. Donald Trump is against China’s AI dominance; therefore, he wants to stop all the ways for the progress.
AI is a leading power worldwide, and companies are adopting the power to the limit. The web solutions, like websites and web apps, are in their most advanced versions with the help of AI expert companies like Weborik Hub, integrating the AI features for automating the processes and making the web solutions more efficient.
Not only this, the threat from Trump also includes a push of 50% tariffs on the trade starting after June 1. This is surely going to exacerbate the trade war between China and the US; therefore, the investors are not feeling safe to work here, and this is affecting Apple and the linked companies. Apple has been trying to shift production to countries like India and Africa, but Trump is not happy with this decision at all and is making efforts to shift all the work to the US.
