Trump's Targeting Of Apple Isn't Random — Analyst Says It's A Calculated Move For Maximum Political Gain

Benzinga
2025.05.26 02:41
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Analyst Ming-Chi Kuo explains President Trump's targeting of Apple Inc. is strategic for political gain. Trump aims for media attention by pressuring Apple to adopt 'Made in America' policies, knowing the company rarely retaliates publicly. This allows Trump to claim victories whether Apple relocates production or negotiates tariff deals. Recently, Trump threatened a 25% tariff on iPhones unless they are manufactured in the U.S., coinciding with Apple's expansion in India. Following Trump's remarks, Apple shares fell 3.02% but rose 0.30% in after-hours trading.

Apple Inc. AAPL isn't a company usually associated with national security, but it is in the crosshairs of President Donald Trump, now an expert has given his take on the situation.

What Happened: On Friday, Ming-Chi Kuo, an analyst at TF Securities, took to X, formerly Twitter, and outlined three key reasons why Trump persistently targets Apple in public.

First, he noted, Trump knows that pressuring a global brand like Apple guarantees widespread media attention. "Forcing Apple, the world’s most famous company, and its iconic iPhone to adopt ‘Made in America' policies generates maximum exposure."

Second, Apple rarely pushes back publicly, making it a low-risk target. "Apple is reluctant to openly contest Trump's statements or mount significant opposition," Kuo added, stating that it makes it easier for Trump to apply pressure without facing serious backlash.

Finally, Kuo explained that Trump benefits regardless of Apple's response.

"If Apple moves iPhone assembly back to the U.S., Trump can promote it as a major ‘Made in America’ achievement and key policy win."

On the other hand, if Apple negotiates a deal to avoid tariffs, Trump still gains leverage — and he can always reignite pressure later, Kuo stated.

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Why It's Important: Earlier on Friday, Trump demanded that iPhones sold in the U.S. must be manufactured domestically, or the company could face a 25% tariff.

Trump's remarks were a direct response to Apple's expanding footprint in India, where its major supplier, Foxconn, also known as Hon Hai Precision Industry Co. Ltd HNHAF, is constructing a $1.5 billion display module facility near Chennai, India.

Following this, Kuo said that Apple would likely find it more financially viable to absorb a 25% tariff on U.S. iPhone sales than to relocate its iPhone assembly operations back to the U.S.

Price Action: Apple shares declined 3.02% during Friday's regular session but edged up 0.30% in after-hours trading, according to Benzinga Pro.

Benzinga Edge Stock Rankings assigned Apple a growth score of 33.12%. Click here to see how it compares to other leading stocks.

Check out more of Benzinga’s Consumer Tech coverage by following this link.

Photo Courtesy: Joey Sussman on Shutterstock.com

  • As Apple Faces Pressure After Trump Told Tim Cook To Avoid Manufacturing In India, Expert Warns iPhone Maker’s ‘Value-Added Growth Is In Danger’
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