Apple shares tumble 4% as Trump threatens 25% tariff on iPhones made outside US

Apple Inc.’s shares plunged 4% to a low of $193.46 on Friday after US President Donald Trump threatened to impose a brand new 25% levy on the iPhone maker if it continues manufacturing gadgets outside the United States.The warning got here amid escalating commerce tensions, as Trump additionally proposed a sweeping 50% tariff on items from the European Union.As of 11:07 am ET, Apple shares had been buying and selling at $195.94, down 2.69%.The announcement, made by way of a sequence of posts on Trump’s Truth Social platform, rattled investor confidence and triggered a broad sell-off on Wall Street. “I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025,” Trump said, expressing frustration with ongoing commerce negotiations with the bloc, which he claimed “are going nowhere.”Major expertise shares together with Microsoft, NVIDIA, Amazon, Alphabet, and Meta additionally registered losses of as much as 2% in early commerce.A Reuters report famous that if enacted, the proposed tariffs would considerably elevate the present 10% levy on imported merchandise and intensify financial frictions between the US and the EU—its largest buying and selling companion.ALSO READ | Donald Trump’s contemporary blow for Apple’s ‘Make in India’ plans; publicizes 25% tariff on iPhones made outside USIn a separate message, Trump criticized Apple for failing to shift iPhone manufacturing to the US regardless of his prior requests. He warned that tariffs of “at least” 25% may very well be imposed if the corporate doesn’t comply.Market anxiousness was mirrored within the VIX volatility index—Wall Street’s “fear gauge”—which spiked by 18.5% round 9:30 a.m. in New York.Trump’s administration had beforehand paused reciprocal tariffs on April 9, every week after implementing them on April 2, which he dubbed ‘Liberation Day.’ This adopted earlier 25% tariffs on metal and aluminum imports.Talks are ongoing between the US and greater than a dozen nations, together with the EU, to strike commerce agreements earlier than world tariffs probably return in early July. On May 12, Washington and Beijing agreed to a 90-day pause on their tit-for-tat tariff measures.Despite efforts to achieve offers, overseas officers stay cautious, citing a scarcity of readability from the US on its calls for and issues that Trump may unpredictably reinstate tariffs—undermining negotiations.