Apple stock hiccuped on Friday after President Trump unexpectedly unleashed an ominous warning to the Silicon Valley tech giant.
Shortly before 10:10 am ET, Trump tweeted that the White House would not give any “Tariff wavers (sic)” to the Tim Cook-led firm, which has long manufactured most of its devices outside the country.
Earlier this year, Apple revealed it would shift Mac Pro production from the United States to China, despite lingering concerns over the trade war’s impact on supply chains. The high-end desktop – which retails for around $6,000, was previously Apple’s only major device still manufactured in the US, specifically at a plant in Texas.
Three days ago, Bloomberg reported that Apple had asked the White House to exempt Mac Pro parts from import tariffs, and Trump – true to character – delivered his answer via his favorite social media platform.
AAPL shares endured a small, albeit noticeable, dip following Trump’s tweet, sliding from $208.97 to $207.98. The stock currently clings to session gains of 0.47%.
The lack of a tariff waiver won’t have much impact on Apple’s business since the Mac Pro is a niche device.
However, Trump’s outspoken antagonism toward the company might spook investors, especially since the Department of Justice recently announced an antitrust probe into the US tech industry.
The president also set his sights on Google in a separate tweet on Friday, warning that there “may or may not be National Security concerns” with the company and its “relationship with China.”
“If there is a problem, we will find out about it,” he warned. “I sincerely hope there is not!!!”
Google-parent Alphabet’s stock also saw a minor dip in the minutes following Trump’s tweet, but the firm’s banner earnings report continues to power GOOGL shares toward session gains of 10%.
Last modified: September 23, 2020 12:51 PM