Shanghai: Shares of Apple suppliers listed in China declined on Monday after former U.S. President Donald Trump reignited trade tensions by threatening new tariffs on imported iPhones.
Luxshare Precision Industry Co. Ltd. (002475.SZ), which assembles iPhones and produces AirPods, saw its stock fall by 2.2%. Shares of Lens Technology Co. Ltd. (300433.SZ), a key mobile screen manufacturer for Apple, dropped by 1.8%. Goertek Inc. (002241.SZ), another AirPods producer, also recorded losses as investor confidence wavered.
Trump warned on Friday of his intention to impose a 25% tariff on iPhones that are sold—but not manufactured—in the United States. The proposed tariff is part of a broader push to bring manufacturing jobs back to American soil. He also floated the idea of doubling the rate to 50% starting June 1, raising alarms over a possible escalation in the U.S.-China trade dispute after a period of relative calm.
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The White House had earlier paused sweeping tariffs introduced in April, following a sharp sell-off of U.S. assets, including bonds and the dollar. Despite this, a 10% baseline tariff remains in effect on most imported goods, and the previous 145% tax on Chinese products has been scaled back to 30%.
In response to these trade pressures, Apple is accelerating its shift in production strategy. The company aims to manufacture the majority of iPhones sold in the U.S. at its Indian factories by the end of 2026, thereby reducing exposure to Chinese tariffs.
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Still, shifting production to the U.S. presents significant challenges. U.S. Commerce Secretary Howard Lutnick told CBS, “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.”
However, in a follow-up interview with CNBC, Lutnick acknowledged, “Cook told him that doing so requires technology not yet available,” indicating that a full domestic manufacturing transition remains distant.
