Apple shares fall on concern Trump tariffs on China will hit profit
Summary
Apple shares fell more than 3% on Monday after President Donald Trump announced 10% tariffs on China, where the company assembles the majority of its products. While Apple faced tariffs during the first Trump administration, the company was largely able to avoid fees by securing waivers for its specific products. However, the company guided investors to expect merely "low to mid single digits" growth in the current quarter, and said sales in China, Taiwan and Hong Kong declined 11% in the latest period. If Apple can source 80% of U.S.-bound devices from outside of China and doesnt raise prices, it could hurt annual earnings by 5 cents per share, or less than 1%, according to a note on Monday from Bank of America Securities analyst Wamsi Mohan. "As the new tariff is imposed on imports from China, Apple could have its manufacturing partners ramp up production in India and ship to the U.S.," Mohan wrote.
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