Wall Street took a hit Friday morning, led by a 4% fall in Apple’s share price, after Donald Trump reignited global trade war fears with fresh tariff threats. The former president’s vow to impose a 25% import tax on iPhones not manufactured in the U.S. triggered a sell-off that dragged down major indexes and raised new questions about the future of iPhone manufacturing, US-EU trade relations, and Apple’s supply chain resilience.
Apple Share Price Suffers on Supply Chain Warning
Apple’s stock dropped to $193.46, reflecting investor concerns about the company’s overreliance on overseas manufacturing—primarily in China and India. Trump, posting on Truth Social, lambasted Apple for “failing to bring iPhone production home” and warned of “at least a 25% tariff” on foreign-assembled units sold in the U.S.
“If Apple continues to ignore our demands and refuses to build in America, we will act. Enough is enough,” Trump wrote.
This rhetoric was a flashpoint for investors already jittery over geopolitical instability and uncertain trade policy.
Trump’s Trade Barrage Targets Europe Next
But the tariff talk didn’t stop at Apple. Trump added fuel to the fire by threatening a 50% blanket tariff on the European Union, set to begin June 1, 2025, accusing EU leaders of “stonewalling” trade negotiations.
That announcement further battered markets. The Dow Jones Industrial Average dropped 391.47 points (0.94%) to settle at 41,467.60, while the S&P 500 fell 64.68 points (1.11%), and the Nasdaq Composite tumbled 261.83 points (1.38%), with major tech stocks like Microsoft, Amazon, and NVIDIA shedding up to 2%.
Trump warns Apple of 25% tariff on iPhones made in India or anyplace else; stock drops 2%
European Union Retaliation Looms
Analysts now expect a strong retaliatory response from the EU. Early comments from Brussels hinted at “comprehensive countermeasures” if the U.S. goes through with what they’re calling “economic aggression disguised as patriotism.”
“The European Union will not sit idle if these tariffs are imposed. We are preparing our own response package,” one senior EU diplomat told Reuters, signalling that the June 2025 tariffs could unleash a new phase in the US-EU trade war.
Apple Faces Supply Chain Reckoning
The tariff threat raises urgent questions for Apple’s global strategy. With iPhone manufacturing rooted in countries like China, Vietnam, and India, the tech giant faces pressure to reassess its operations.
Trump’s remarks have renewed scrutiny over Apple’s reluctance to localise production, despite repeated calls from Washington during his previous term. While Apple has made limited U.S. investments, including a Texas-based chip plant, full-scale domestic assembly remains commercially unviable under current cost structures.
Still, the market may not wait. “A 25% tariff would blow a hole in Apple’s pricing model and could push device costs up by $100 or more per unit,” said one tech analyst. “Investors are right to be nervous.”
Truth Social, Global Repercussions
Interestingly, this latest economic tremor was triggered not by a formal White House announcement, but by a post on Truth Social, Trump’s social media platform. The Truth Social-Trump connection continues to have outsized influence on markets, with policy speculation often being treated as near-certainty by investors.
Analysts warn that governing via social media posts fuels unpredictability, a concern echoed by foreign governments now wary of any long-term commitments in negotiations with the U.S.
Dow Dip and the Broader Market Reaction
Trump’s new stance comes just weeks after a temporary détente between the U.S. and China on May 12, where both sides agreed to a 90-day pause on tit-for-tat tariffs. That calm appears short-lived.
The market reaction was swift and broad-based:
- Apple share price: down 4%
- Dow Jones: down 0.94%
- Nasdaq: down 1.38%
- S&P 500: down 1.11%
- Major tech stocks: losses between 1.5% to 2%
Investors are now bracing for the next steps. If these proposed tariffs are implemented, they could mark the most aggressive trade escalation since the original Trump administration imposed steel and aluminium tariffs in 2018.
What Happens Next?
With Trump positioning tariffs as a central plank of his 2025 policy platform, the pressure is now on corporate America — particularly tech giants like Apple — to adapt quickly or face painful consequences.
Meanwhile, trade partners like the EU and China are recalibrating their strategies, unsure of whether any negotiation will hold long-term weight.
As Apple’s stock dip reverberates through portfolios and headlines, one thing is clear: global trade policy is once again at the mercy of Trump’s timeline and tone. And the clock is already ticking toward June 2025.
