“Apple shares fell in Tuesday’s premarket, a day after President Donald Trump suggested the U.S. could place a 10 percent tariff on iPhones and laptops made in China,” Michael Sheetz reports for CNBC. “Trump told The Wall Street Journal that ‘people could stand’ that tariff rate ‘very easily.'”
“Apple shares, which are already down 20 percent this month, fell by 1.8 percent in premarket trading Tuesday,” Sheetz reports. “Trump also said it is “highly unlikely” he would delay an increase in overall tariffs at the beginning of next year to 25 percent from 10 percent. Trump is scheduled to meet with Chinese President Xi Jinping in three days at the G-20 summit.”
“Apple’s products are exempt from the tariffs, but that could change when Trump adds another $267 billion worth of tariffs on Chinese goods,” Sheetz reports. “If Trump continues to raise tariffs on Chinese goods, [Bernstein analyst Tony] Sacconaghi said, the biggest question is ‘how is China going to respond? Could they try to disrupt Apple’s supply chain in some way? Could they not authorize new phones for sale in the country? There are many things that China could do and that could ultimately be even more devastating,’ Sacconaghi said.”
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MacDailyNews Take: Bargaining chips are being laid on the table ahead of the G-20.
What do we see ahead? A very rare – perhaps once in a lifetime – buying opportunity in AAPL.