Quick overview

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Chinese suppliers’ stock price to Apple fell Monday after US President Donald Trump threatened to impose tariffs on iPhone imports. Luxshare’s stock, which assembles iPhones and produces AirPods, dropped 2 percent, while Lens Tech, a Chinese manufacturer of mobile screens, saw a 1 percent decline. Goertek, the company that makes AirPods, saw an 11% decline.

Trump threatened to intensify his trade war once more, threatening to impose a 25 percent tax on any iPhones sold in the US but not manufactured there as part of his administration’s reshoring efforts.

His threat and another that called for a 50 percent tariff on goods from the European Union beginning on June 1 have sparked concerns that the US trade war may re-escalate following weeks of de-escalation.

The White House halted most of the punitive tariffs Trump had announced in early April against almost every nation after investors sold off US assets, including government bonds and the US dollar, in a flurry,. Trump lowered his minimum import tax after leaving a baseline tax of 10% on most imports.

Recently, Apple’s stock has been under pressure. Apple shares have lost out on the May surge in large technology stocks. So far this month, the stock has dropped 8%. Based on FactSet data, it is the only one of the “Magnificent Seven” to have decreased in value during that time. It is also the group’s worst-performing stock, down 22% this year.