President Trump orders U.S. companies to look for alternative to China, Apple and chip stocks slide

Apple CEO Tim Cook laughs with U.S. President Donald Trump as the news media leave the room after the two men spoke while participating in an American Workforce Policy Advisory Board meeting in the White House State Dining Room in Washington, U.S., March 6, 2019. (photo: Reuters/Leah Millis)
Apple CEO Tim Cook laughs with U.S. President Donald Trump as the news media leave the room after the two men spoke while participating in an American Workforce Policy Advisory Board meeting in the White House State Dining Room in Washington, U.S., March 6, 2019. (photo: Reuters/Leah Millis)

Shares of Apple and semiconductor stocks slid on Friday after President Donald Trump said U.S. companies should “immediately start looking for an alternative” to their operations in China.

Annie Palmer for CNBC:

Shares of Apple ended the day down 4.6%, while the VanEck Vectors Semiconductor ETF declined 4.1%. Among the chip companies, Qualcomm slid 4.7%, Nvidia lost 5.2%, Advanced Micro Devices dropped 7.4%, Micron fell roughly 4% and Broadcom slid 5.3%.

The tech-heavy Nasdaq was off 2.6%, while the Dow Jones Industrial Average slid 2.3% and the S&P 500 fell 2.5%.

Trump’s comments on Friday mark the latest fallout in the trade war between the U.S. and China.

Trump’s tweet came after China on Friday pledged to levy tariffs on $75 billion more of U.S. goods, including autos.

MacDailyNews Note: Late last night, President Trump referenced the International Emergency Economic Powers Act (IEEPA) in a followup tweet:

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49 Comments

  1. And meanwhile, spineless republicans and democrats do nothing. Because none of them have the balls to stand up to the dictator-in-command. It’s absurd.

  2. I am curious. Why is it that MacDaily news gleefully and often quite humorously, attacks AAPL’s analysts, rival businesses and critics, but gives this yahoo a pass? I think your right wing is showing.

    1. MacDailyNews, Tim Cook, and Donald Trump are all in agreement, as is anyone not suffering from Trump Derangement Syndrome, that the current state of U.S.-China trade is unfair and unbalanced.

      I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018

  3. The United States could have altered China’s trading behaviour if they had forged a coalition with their traditional allies. Instead, Trump decided to take on China on his own and said trade wars are “…easy to win”. Compounding the mess he is now in he has consistently insulted his allies, cosied up to dictators and upturned the international trading and alliance system.

    Has the president learned anything from this? Nope, not a thing. He’s now backed himself into a corner and is faced with two options:

    Make a humiliating backdown to Xi and China so he can be re-elected or,
    Drag the world into a recession that could and should have been avoided.

    If he goes for option one then I hope the American people see him for what he is; an narcissistic and intellectual lightweight with the attention span of a gnat (and my apologies to all the gnats out there in the insect world).

    If scenario two unfolds then in true Trumpian fashion he’ll blame everyone else because he always takes responsibility for everything positive and blames everyone else for his mistakes and political and moral errors of judgement.

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