Shares of Apple suppliers fell across Asia on Monday after US President Donald Trump tweeted that the tech giant should make products in the United States if it wanted to avoid tariffs on Chinese imports.
Trump’s comment came after Apple told US trade officials on Friday that proposed tariffs by Washington in an escalating trade war with China would affect prices for a “wide range” of Apple items, including the Apple Watch. It did not mention the iPhone.
Chien Bor-yi, an analyst at Taipei-based Cathay Futures Consultant, said Apple’s component supply chain in Taiwan would take a major hit if the US increased tariffs on Chinese imported products.
“People have concerns about the stock market. It’s not a seller’s market, but it’s also not a buyer’s market. No one knows how deep the well is,” he said.
The technology sector is one of the biggest potential losers in the $200 billion tariff list proposed by Washington on Chinese imports because the tariffs would make imported computer parts more expensive.
Trump warned on Friday that he was ready to slap tariffs on virtually all Chinese imports into the United States, threatening duties on a further $267 billion of goods.