iTariff Threat: Trump Turns Up The Heat, But Apple's Chart Still Holds The Line
President Trump has warned Apple Inc. to manufacture iPhones in the U.S. or face a 25% tariff. Despite this threat, the market is currently reacting calmly, with Apple stock down 17.42% year-to-date and trading below major moving averages. The stock is experiencing bearish trends, but some buying pressure is emerging as investors speculate on the likelihood of unilateral action from the Trump administration. Overall, while the charts indicate a bearish outlook, sentiment remains mixed as Apple has a history of managing political challenges.
President Donald Trump just fired a policy warning shot toward Apple Inc. AAPL. In a Truth Social post on Friday, Trump reiterated that he expects Apple to manufacture iPhones sold in the U.S. domestically, not in India or anywhere else. If not, he warns, a 25% tariff could be slapped on the tech giant.
"Thank you for your attention to this matter!" he signed off with his trademark flair.
The market, however, seems to be taking the threat in stride – for now.
Chart created using Benzinga Pro
Read Also: Trump Threatens Tim Cook To Manufacture iPhones In US Or Face ‘At Least 25%’ Tariffs: AAPL Stock Slides Over 3% In Premarket
Apple stock may be grappling with policy uncertainty, but technically, it's already on shaky ground. Year-to-date, the stock is down 17.42% and has fallen 1.58% in the past month alone. More importantly, Apple stock – currently down to $194.86 as the news caused pre-market jitters – is trading below all its major moving averages, including the eight, 20, 50 and 200-day simple moving averages (SMAs). That paints a strongly bearish picture.
Its eight-day SMA stands at $206.12, the 20-day at $205.75 and the 50-day at $206.47. The 200-day SMA is even higher at $225.93. All these levels point to a market still looking for a reason to believe in Apple again – and the tariff threat probably is not it.
Despite the technical downtrend, mild buying pressure is emerging. That could be driven by investors betting that a Trump administration would not act unilaterally or that Apple's global manufacturing machine is too entrenched to unravel easily.
For now, the charts say Bearish, but sentiment hasn’t totally soured. Apple's reputation for navigating political and regulatory headwinds is storied.
However, with tariffs back on the table, investors may want to tread carefully.
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