Tariffs

A US federal court has blocked the former President’s attempts to impose tariffs on imported goods, including those from Apple, citing overreach of executive power. This decision led to a market rally as it averted potentially crippling tariffs on iPhones and other smartphones. Analysts warned of significantly increased prices and difficult logistics if production shifted to the US, potentially taking years and drastically impacting consumer spending.

President Trump delayed implementing 50% tariffs on EU goods to July 9 amid ongoing trade talks, offering temporary relief but prompting analysts to warn of persistent market risks. Despite brief optimism in sectors like tech, experts caution the six-week extension may only pause, not resolve, tensions. Berenberg’s economist suggested a potential 10% tariff compromise, though EU retaliation looms if rates rise. Trump’s confrontational tactics and unclear objectives fuel uncertainty, with the EU’s phased proposals colliding with U.S. protectionism. Markets remain volatile as investors monitor negotiations, bracing for supply chain disruptions and inflation should talks collapse, signaling a turbulent summer of trade brinkmanship. (98 words)

Former U.S. President Donald Trump has threatened 25% tariffs on iPhones unless Apple shifts production stateside, with similar pressures on Samsung, per recent reports. Analysts dismiss the feasibility, noting Apple’s deep reliance on China’s integrated supply chain and the prohibitive costs of relocating manufacturing. TF International’s Ming-Chi Kuo estimates Apple would prioritize absorbing tariffs over restructuring supply lines, while Wedbush’s Dan Ives warns U.S. production could raise iPhone prices to $3,500, crippling demand. Both analysts deem the proposal politically driven and economically unviable.

Former President Donald Trump intervened during his Middle East tour to halt Apple’s India manufacturing expansion, urging Tim Cook to prioritize U.S. production amid rising import tariffs that could increase iPhone prices for American consumers by $190. Despite India’s 60% year-on-year production growth (valued at $2.2 billion) and intensified Foxconn investments there, 80% of iPhones shipped to the U.S. remain China-made. Trump’s tariff threats cost Apple $900 million in Q1 projections, with shares dropping 15% YTD versus the Nasdaq’s 12% gain. Analysts question whether achieving Washington’s domestic manufacturing goals—including 3nm chips and iOS 19 features—can avoid disrupting geopolitical dynamics and investor expectations.