Apple Stock (AAPL) Still Bearish Below $200, as Trump Threatens Tariffs on iPhones, EU
Following a rough start to the year, Apple finds itself at the crossroads of geopolitical conflict and financial recovery, with new tariff..
Quick overview
- Apple has faced a challenging start to 2025, with a significant 35% drop in share value due to geopolitical tensions and trade penalties.
- While other tech stocks have rebounded, Apple's recovery has been slow, closing below $200 and experiencing a weekly loss of 7.5%.
- Investor confidence was shaken by former President Trump's tariff threats targeting Apple, which contributed to market volatility.
- Despite these challenges, Apple reported strong Q1 2025 earnings and authorized a $100 billion stock buyback, indicating financial strength.
Following a rough start to the year, Apple finds itself at the crossroads of geopolitical conflict and financial recovery, with new tariff concerns casting new shadows over an already unpredictable 2025.
A Volatile Start to 2025 for Apple
Apple Inc. has had a tumultuous start to the year, grappling with multiple headwinds that continue to weigh on its share performance. The tech giant suffered a staggering 35% drop in share value in February after reaching an all-time high above $260 in late 2024. By early April, shares had bottomed around $169, reflecting a steep correction in the wake of broader tech selloffs triggered by U.S. trade penalties targeting China.
Stuck in the Red While Tech Rivals Recover
While many major tech stocks have staged convincing rebounds, Apple’s recovery has been comparatively sluggish. Despite a brief rebound in market momentum in recent weeks, Apple closed below the $200 mark again this week, registering a weekly loss of 7.5%.
AAPL Chart Weekly – Heading for April Lows Again
AAPL share price has fallen below the 100 weekly SMA (green) again, which puts the stock in the bearish zone. This contrasts sharply with peers who have returned to positive territory amid a broader rotation back into growth stocks.
President Trump’s Tariff Threats Shake Confidence Again
Investor jitters were amplified on Friday when former President Donald Trump posted on Truth Social threatening aggressive new tariffs. He proposed a 50% duty on European Union imports and explicitly targeted Apple with a potential 25% surcharge unless the company repatriates its iPhone manufacturing to the United States. The news rattled markets, with the Nasdaq dropping 1% on the day and finishing the week down 1.07%.
These renewed threats echo earlier 2025 trade disruptions and may hinder Apple’s ability to sustain its recent momentum, especially as uncertainty over trade policy intensifies ahead of the U.S. election cycle.
Earnings Offer Glimmers of Optimism
Despite geopolitical shocks, Apple delivered strong quarterly results for Q1 2025 that have temporarily propped up sentiment. The company reported $95.4 billion in revenue and $24.8 billion in net profit, with earnings per share hitting $1.65—a record for any March quarter. Notably, Apple’s Services segment posted all-time high revenues, underscoring the company’s successful shift away from hardware dependence.
Apple also authorized a massive $100 billion stock buyback, reaffirming confidence in its financial footing and providing a supportive signal to long-term shareholders. The move is expected to soften the impact of external shocks and stabilize the share price in the near term.
Looking Ahead
Still, Apple remains vulnerable to global policy shifts and regulatory risk. Unless the trade rhetoric cools or a broader diplomatic resolution emerges, Apple’s stock may continue to lag behind peers. Investors are watching closely to see whether the company can maintain earnings strength while navigating escalating political headwinds.
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