Apple’s Asian suppliers are facing a sell-off in their stocks Monday after US President Donald Trump tweeted that the Californian company should move its production back to America.
Shares in the Chinese-based suppliers Luxshare Precision, Shenzhen Sunway Communication and Suzhou Dongshan Precision Manufacturing all plunged as much as 10 percent. The companies are producing Apple’s AirPods wireless headphones, antennas and enclosures for iPhone and other products for the firm.
In Taiwan, camera lens-maker Largan Precision fell almost 8 percent, Foxconn, a major manufacturer of Apple products, plunged 3.4 percent, while assembler Pegatron lost nearly 4 percent.
“People are in a bit of a panic today. Looking forward, the focus would be on how the market reacts after Apple releases its latest models,”said Kevin Chung, analyst at JihSun Securities Investment Consulting, as quoted by Reuters.
Apple is worried that a new round of Trump’s tariffs against China, on a further $267 billion of goods this time, will result in a price hike of its products. To this Trump tweeted that “Apple prices may increase because of the massive Tariffs we may be imposing on China – but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China.”
Apple already manufactures some parts in the US, CEO Tim Cook previously noted. The company is making iPhone display glass in Kentucky, and is setting up new plants in other areas.