Shares in Apple’s Asian suppliers tumble after Trump calls for iPhone to be made in the US
Shares in Apple's Asian suppliers have slumped this morning after Donald Trump suggested the iPhone maker should move its production to the US to avoid proposed tariffs on Chinese products.
Suppliers in China, Hong Kong and Taiwan have seen their shares tumbles after the US President offered the tech giant a tax incentive to produce in America.
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Apple had told US officials on Friday that proposed tariffs on almost all Chinese imports would affect prices for a wide range of products, including the Apple Watch.
China-based Apple suppliers Luxshare Precision, Shenzhen Sunway Communication and Suzhou Dongshan Precision Manufacturing have all suffered this morning as a result – with share prices for all three dropping by 10 per cent.
In Taiwan, camera lens manufacturer Largan Precision fell nearly eight per cent.
Hong Kong-listed AAC Technologies, which supplies miniature electronic parts for Apple, such as speakers and interface technology, fell four per cent.
Trump warned on Friday he was “ready to go” with a further $267bn in tariffs on Chinese goods, on top of a 25 per cent tariff hike on $200bn worth of products that could be imposed “very soon”.
Following warnings from Apple that the tariffs could hit prices, Trump hit back and escalated the trade war between the world's two biggest economies.
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He said: “Apple prices may increase because of the massive tariffs we may be imposing on China – but there is an easy solution where there would be zero tax, and indeed a tax incentive.
“Make your products in the United States instead of China – start building new plants now.”