Shares of major China-listed Apple suppliers, including Luxshare, Goertek, and Lens Tech, experienced significant declines on May 26, 2025, following U.S. President Donald Trump’s threats to impose tariffs on imported iPhones. Luxshare saw a 2.2% drop, Lens Tech fell 1.8%, and Goertek declined by 1.1%.
President Trump announced plans to implement a 25% tariff on iPhones sold in the U.S. but not manufactured domestically, aiming to encourage U.S. production and job creation. He also warned of a potential 50% tariff as early as June 1.
This move has reignited fears of escalating trade tensions between the U.S. and China, reversing a brief period of de-escalation. Previously, many tariffs had been paused following market backlash, though a 10% baseline tax and a reduced 30% tax on Chinese goods remained.
Impact on Apple’s Production and Global Markets
In response to these developments, Apple is accelerating its plans to shift iPhone production to India by 2026. While U.S. Commerce Secretary Howard Lutnick suggested that production could move to the U.S. with automation creating skilled jobs, Apple CEO Tim Cook indicated that the necessary technology is not yet available.
The threat of tariffs has also affected stock markets globally. The S&P 500 lost momentum, while Apple shares dropped substantially after Trump’s latest tariff threats. Overall, the trade narrative remains fluid and deeply interwoven with domestic fiscal strategies.
Investors are closely monitoring the situation, as the outcome of these tariff threats could have significant implications for Apple’s supply chain and global trade relations.
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