Apple Stock Is Dropping. Trump Wants iPhones to Be Built in U.S.

 Apple Stock Is Dropping. Trump Wants iPhones to Be Built in U.S.

By Steven Orlowski, CFP, CNPR

Apple Inc. has long been one of the most influential and valuable companies in the world, with its sleek iPhones and Macs symbolizing cutting-edge technology and global consumer power. But in recent weeks, Apple’s stock has taken a hit—down nearly 10% from recent highs—as concerns mount over softening demand in China, regulatory scrutiny in Europe, and political rhetoric at home.

One of the latest developments raising eyebrows on Wall Street: former President Donald Trump’s renewed calls for Apple to move its iPhone production to the United States.

A Familiar Message with New Timing

At a recent rally and again in a Truth Social post, Trump criticized Apple’s reliance on Chinese manufacturing and reiterated his longstanding demand that the tech giant “build iPhones in America.” Trump framed the issue as one of national security, jobs, and economic independence.

“Apple should be making their iPhones in the USA—not in China, where they’re helping build up our biggest adversary,” Trump said. “When I’m back in office, companies that outsource to hostile countries will face tariffs like they’ve never seen before.”

The statement comes amid broader geopolitical tensions between Washington and Beijing, and as both political parties take increasingly hawkish stances on trade and domestic manufacturing. But the markets, already jittery over a range of Apple-specific issues, didn’t take the news lightly.

The Market Reaction

Apple’s stock, already under pressure from weak iPhone sales in China and a fresh antitrust lawsuit from the U.S. Department of Justice, fell further after Trump’s remarks. Analysts at JPMorgan and Goldman Sachs note that while Trump’s comments don’t have immediate policy implications, they add to the “wall of worry” investors are already climbing.

“Political uncertainty heading into the 2024 election, especially around tariffs and trade, is becoming a non-trivial factor in Apple’s risk profile,” wrote Dan Ives, a tech analyst at Wedbush Securities. “The idea of moving iPhone production to the U.S. is not economically viable at this time, but the market hears ‘tariffs’ and it reacts.”

The Reality of “Made in America”

Apple relies heavily on a vast and complex supply chain based in Asia, particularly in China, where companies like Foxconn employ hundreds of thousands of workers assembling iPhones at a scale and speed unmatched anywhere else in the world. While Apple has made moves to diversify some of its manufacturing to India and Vietnam, bringing significant production to the U.S. would be a monumental—and costly—shift.

According to a 2020 analysis by the Brookings Institution, producing iPhones entirely in the U.S. could increase the cost of each device by $100–$200, not to mention the logistical challenges of replicating the precision and efficiency of existing Asian manufacturing hubs.

Apple has previously stated its commitment to expanding American jobs through its U.S.-based chip facilities and data centers, but CEO Tim Cook has avoided direct comment on Trump’s manufacturing demands.

The Bigger Picture

Apple’s drop in stock price—shaving tens of billions off its market cap—highlights how vulnerable even the biggest companies are to global politics. With more regulatory scrutiny, shifting consumer behavior in key markets like China, and now the return of high-stakes political rhetoric around trade and tariffs, Apple faces a minefield of economic and political risks in 2025.

Investors will be watching closely to see if Trump’s comments translate into concrete policy proposals—and how Apple, which has long walked a delicate line between governments, responds.

For now, one thing is clear: in an election year where economic nationalism is back on the ballot, even a company as powerful as Apple can’t escape the pull of politics.