This Is Apple's (AAPL) Plan to Avoid Trump's Tariffs on China
Tech giant Apple (AAPL) is planning to send more iPhones to the U.S. from India in order to avoid the high costs of new tariffs on Chinese goods, according to a report from the Wall Street Journal. This is meant to be a short-term solution while the company tries to get an exemption from President Trump's tariffs—similar to one CEO Tim Cook secured during Trump's first term. Still, Apple sees the current trade environment as too unstable to make big, long-term changes to its supply chain right now.
Don't Miss Our End of Quarter Offers:
Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks.
Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter.
Trump has placed at least a 54% tariff on goods from China, while Indian goods face a lower 26% tariff. China responded by adding a 34% tariff on certain U.S. products. On top of that, Trump recently threatened an additional 50% against China if it doesn't remove its retaliatory tariffs, which caused Apple's stock to fall in today's trading.
Even though Apple is working to diversify where its products are made, it still relies heavily on China to manufacture iPhones. As a result, analysts at Needham say that if Apple doesn't get a tariff exemption, its earnings for Fiscal Year 2025 could drop by 28% or more. That makes the outcome of Trump's tariff policy especially important for how it will conduct its operations going forward.
Is Apple a Buy or Sell Right Now?
Overall, analysts have a Moderate Buy consensus rating on AAPL stock based on 17 Buys, 11 Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $248.28 per share implies 38.4% upside potential.
See more AAPL analyst ratings
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Winnipeg Free Press
44 minutes ago
- Winnipeg Free Press
Iranians react to new Trump travel ban as tensions are high between nations
TEHRAN, Iran (AP) — Iranians again face a U.S. travel ban imposed by President Donald Trump, with the decision drawing anger, frustration and some shrugs given the decades of tensions between the countries. Trump imposed a similar ban during his first term before withdrawing America unilaterally from Tehran's 2015 nuclear deal with world powers, under which Iran drastically limited its program in exchange for the lifting of economic sanctions. But when he returned to the White House and began seeking a new deal with Iran, it saw the country's rial currency improve and stocks rise, but worries have grown as its government appears poised to reject an initial American proposal. The travel ban has further darkened that mood and led Iranians to fear Trump will lump the nations' 80 million people alongside of its theocratic government even after he's repeatedly praised them while seeking a deal. People walk past a state-sponsored anti-U.S. mural painted on the wall of the former U.S. Embassy in Tehran, Iran, Wednesday, May 7, 2025. (AP Photo/Vahid Salemi) 'Now I understand that Trump is against all Iranians, and his attitude is not limited to the government,' said Asghar Nejati, a 31-year-old man working in a Tehran pharmacy. Even in the years after the 1979 Islamic Revolution and subsequent U.S. Embassy hostage crisis, Iranian students traveled to the U.S. to attend universities. Between 2018 to 2024, an average of around 10,000 Iranian students went to the U.S. annually. Estimates suggest some 1 million Iranian-origin people live in the U.S. today. Mehrnoush Alipour, a 37-year-old graphic designer, said the nations could have better relations if they could spoke to each other in softer tones. 'This is another foolish decision. Trump cannot reach his goals by imposing pressures on ordinary Iranians,' she said. 'The two nations can have better relation through openings, not restrictions.' Bank teller Mahdieh Naderi said Trump was lashing out over his frustrationed efforts to reach ceasefires in the Israel-Hamas war and the Russia-Ukraine war. 'Trump just expressed his anger about his failed plans,' Naderi said. 'He is complaining about the Chinese and others who are living in the U.S., too Some said interest in the U.S. was already waning before the latest ban. 'Over the past years, two of my grandchildren went to Canada to continue their education there,' said Mohammad Ali Niaraki, 75. 'Iranians are not limited in immigration and they are not as interested to go to the U.S. as they were decades ago. Iranians prefer Canada, as well as neighboring countries with flourishing economies like the (United Arab) Emirates.'.' But others pointed out that high-ranking government officials have children living or working in the U.S., despite the tensions. 'It's fine, but if he also kicks out the children of officials who live there it would be very nice,' said a man who just gave his name as Mehdi. 'We can't afford traveling to the U.S, almost 80% of us can't. But if he kicks out those who are already there it would be much better.' Tehran resident Mehri Soltani offered rare support for Trump's decision. 'Those who have family members in the U.S, it's their right to go, but a bunch of bad people and terrorists and murderers want to go there as well,' he said. 'So his policy is correct. He's doing the right thing.' ___ Gambrell reported from Dubai, United Arab Emirates.
CTV News
5 hours ago
- CTV News
CTV National News: Elon Musk and Trump lashing out against each other
Watch A war of words is beginning to emerge between U.S. President Trump and Elon Musk following the billionaire's White House exit. Joy Malbon has the details.
Winnipeg Free Press
6 hours ago
- Winnipeg Free Press
Asian shares mostly gain ahead of Friday's US jobs report
TOKYO (AP) — Asian shares were mostly higher Friday ahead of an update on the U.S. job market that will offer insights into how the economy is faring. U.S. futures edged higher and oil prices fell. Tokyo's Nikkei 225 index rose 0.5% to 37,730.67, while the Kospi in South Korea jumped 1.5% to 2,812.05. Hong Kong's Hang Seng lost 0.4% to 23,817.10 and the Shanghai Composite index edged 0.1% higher, to 3,385.91. Australia's S&P/ASX 200 was nearly unchanged at 8,536.40. India's Sensex gained 0.6%. On Thursday, the S&P 500 fell 0.5% to 5,939.30 for its first drop in four days. After sprinting through May and rallying within a couple good days' worth of gains of its all-time high, the index at the center of many 401(k) accounts has lost momentum. The Dow Jones Industrial Average dropped 0.3% to 42,319.74, and the Nasdaq composite sank 0.8% to 19,298.45. The U.S. Labor Department is due to report how many more jobs U.S. employers created than destroyed during May. The expectation on Wall Street is for a slowdown in hiring from April. A resilient job market has been one of the linchpins that's propped up the U.S. economy, and the worry is that all the uncertainty created by President Donald Trump's on-and-off tariffs could push businesses to freeze their hiring. A report on Thursday said more U.S. workers applied for unemployment benefits last week than economists expected. The number remains relatively low compared with history, but it still hit its highest level in eight months. The data came as Procter & Gamble, the giant behind such brands as Pampers diapers and Cascade dish detergent, said it will cut up to 7,000 jobs over the next two years. Its stock fell 1.9%. The day's heaviest weight on the market was Tesla, which tumbled 14.3%. It's lost nearly 30% of its value so far this year as CEO Elon Musk's relationship with Trump sours amid a disagreement over the president's signature bill of tax cuts and spending. In after-hours trading Tesla gained 2.2%. Brown-Forman, the company behind Jack Daniel's and Woodford Reserve, dropped 17.9% for its worst day since it began trading in 1972. Hopes that Trump will lower his tariffs after reaching trade deals with other countries have been among the main reasons the S&P 500 has rallied back so furiously since dropping roughly 20% from its record two months ago. It's now back within 3.3% of its all-time high. Trump boosted such hopes Thursday after saying he had 'a very good phone call' with China's leader, Xi Jinping, about trade and that 'their respective teams will be meeting shortly at a location to be determined.' It's an easing of tensions after the world's two largest economies had earlier accused each other of violating the agreement that had paused their stiff tariffs against each other, which threatened to drag the economy into a recession. Markets took the latest signs of detente with Beijing coolly, given that nothing is assured in Trump's on-and-off rollout of tariffs. Among Wall Street's winners was MongoDB, which jumped 12.8% after the database company likewise delivered a stronger profit than analysts expected. Monday Mornings The latest local business news and a lookahead to the coming week. Circle Internet Group, the U.S.-based issuer of one of the most popular cryptocurrencies, surged 168.5% in its first day of trading on the New York Stock Exchange. The yield on the 10-year Treasury held steady at 4.40%, up from 4.37% late Wednesday after tumbling from 4.46% the day before. Yields dropped so sharply on Wednesday as expectations built that the Federal Reserve will need to cut interest rates later this year to prop up an economy potentially weakened by tariffs. In other dealings early Friday, U.S. benchmark crude oil lost 21 cents to $63.16 per barrel. Brent crude, the international standard, fell 18 cents to $65.16 per barrel. The U.S. dollar rose to 143.77 Japanese yen from 143.49 yen. The euro fell to $1.1438 from $1.1448.
