Apple's China listed supplier loses stocks after Trump unveils tariffs
Apple logo is seen on the Apple store at The Marche Saint Germain in Paris, France July 15, 2020. PHOTO:REUTERS
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China-listed Apple supplier stocks lost ground on Monday after US President Donald Trump threatened tariffs on imported iPhones.
Shares in Luxshare which assembles iPhones and makes AirPods, fell 2.2% while Chinese mobile screen maker Lens Tech lost 1.8%. Airpod maker Goertek declined 1.1%.
🇨🇳🇺🇸A-SHARES LUXSHARE PRECISION INDUSTRY, A KEY APPLE SUPPLIER, HIT LIMIT DOWN FOR THREE CONSECUTIVE TRADING DAYS, WITH A TURNOVER EXCEEDING 3 BILLION YUAN.#CHINA $AAPL @MKTNews24 https://t.co/AkxWoTTOZV pic.twitter.com/0aXfZ7Jgrj — CN Wire (@Sino_Market) April 8, 2025
Trump threatened on Friday to ratchet up his trade war again, warning Apple he may slap a 25% levy on any iPhones sold, but not made, in the US as part of his administration's goal of re-shoring jobs.
His threat, along with a second that pushed for a 50% tariff on starting June 1, has raised fears that the trade war that the US is waging could intensify again after weeks of de-escalation.
The White House paused most of the punishing tariffs Trump announced in early April against nearly every country in the world after investors furiously sold off US assets, including government bonds and the US dollar.
Trump left in place a 10% baseline tax on most imports, and later reduced his massive 145% tax on Chinese goods to 30%.
Apple is speeding up plans to make most iPhones sold in the United States at factories in India by the end of 2026 to tariffs in China.
Commerce Secretary Howard Lutnick told CBS last month that the work of "millions and millions of human beings screwing in little, little screws to make iPhones" would come to the United States and be automated, creating jobs for skilled trade workers such as mechanics and electricians.
But he later told CNBC that Cook told him that doing so requires technology not yet available.
According to Tech in Asia, despite years of efforts to reduce China exposure, Apple remains vulnerable to tariffs with 85% of iPhones still manufactured in China.
The company has made significant progress in India, shifting 50% of US-sold iPhones to Indian production and supporting Foxconn's plans for a new US$1.5 billion factory there.
These diversification efforts, however, aren't enough to fully insulate Apple from tariff threats, as recent statements specifically demand US manufacturing rather than just non-Chinese production.
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