Following US President Donald Trump’s warning of imposing tariffs on imported iPhones, stocks of Chinese-listed Apple suppliers fell on Monday. Luxshare’s stock, which assembles iPhones and produces AirPods, dropped 2.2%, while Lens Tech, a Chinese manufacturer of mobile screens, had a 1.8% decline. Goertek, the maker of AirPods, saw a 1.1% dip.

As part of his administration’s effort to reshoring jobs, Trump threatened to intensify his trade war once more on Friday, telling Apple that he may impose a 25% tax on any iPhones sold but not manufactured in the US. After weeks of de-escalation, his ultimatum and another that called for a 50% tax to take effect on June 1 have sparked concerns that the US’s trade war may re-escalate.

Following a frenzied sell-off by investors in US assets, notably government bonds and the US currency, the White House halted the majority of the punitive tariffs Trump had proposed in early April on almost every nation in the globe. Trump lowered his astronomical 145% tax on Chinese goods to 30% after maintaining a 10% baseline charge on the majority of imports.

In response to Chinese tariffs, Apple is expediting its plans to have the majority of iPhones sold in the US manufactured in Indian plants by the end of 2026.

The task of “millions and millions of human beings screwing in little, little screws to make iPhones” will be mechanized in the US, according to a statement made by Commerce Secretary Howard Lutnick to CBS last month. This will create jobs for trained tradespeople like electricians and mechanics.

However, Cook informed him that doing so would require technology that is not yet available, he later told CNBC. According to Tech in Asia, after years of efforts to limit China’s exposure, Apple remains exposed to tariffs, with 85% of iPhones being made in China.

The business has made great strides in India, supporting Foxconn’s ambitions for a new US$1.5 billion facility there and moving 50% of US-sold iPhones to Indian production. Nevertheless, subsequent declarations expressly call for US manufacture rather than just non-Chinese production. Thus, these diversification measures are insufficient to completely shield Apple from tariff concerns.