Overview

• President Trump announced a 25% tariff on iPhones not manufactured in the United States, demanding Apple shift production domestically.
• Apple shares dropped approximately 3% in premarket trading following the announcement, reflecting investor concerns about the policy's implications.
• Analysts estimate a U.S.-manufactured iPhone could cost as much as $3,500, making domestic production economically unviable for Apple.
• The legal basis for imposing a company-specific tariff remains unclear, adding to uncertainty around the enforceability of Trump's threat.
• In a related move, Trump proposed a 50% tariff on all European Union imports, escalating trade tensions and impacting global markets.