Apple’s stock came under fire from former US President Donald Trump, who criticized the company’s choice to invest in production in India. Trump stated that he expected iPhones for the US to be made domestically and warned of a 25% tariff if this didn’t happen. This criticism led to a 4% drop in Apple’s shares during premarket trading. Although Apple had previously received an exemption when moving production from China to India, this did not satisfy Trump. He reminded everyone of Apple’s $500 billion investment pledge in the US made when he took office. Neither Apple CEO Tim Cook nor Trump provided details about their recent meeting.

Impact On Apple Stock

In his social media post, Trump also slammed the EU for creating trade imbalances, noting a significant $235.6 billion trade deficit with the US. He announced intentions for a 50% tariff on the EU starting June 1. Currently, Apple’s stock is trading below key support levels, suggesting a bearish trend. It stays beneath its 50-day and 200-day simple moving averages, and major US indices futures have declined, indicating possible further losses for Apple. The sharp 4% decline in Apple’s share price likely stems more from its geopolitical exposure than its fundamentals. Trump’s comments on moving iPhone production back to the US carry weight and have impacted the market. The threat of a 25% tariff could significantly affect profit margins, production plans, and supply chains. Whether Trump’s proposal gets enacted is secondary to the fact that the risk is now affecting prices. Apple trading below both the 50-day and 200-day simple moving averages already indicated a weak trend, but this new political development increases potential downside risks. Sellers seem ready to take advantage, while buyers are cautious. Changes in derivatives reveal much more than just current prices. We’ve seen implied volatility increase in out-of-the-money puts across short-term options, which usually indicates growing demand for protection. The meeting between Cook and Trump, though not officially detailed, likely indicates a failed attempt to ease concerns. This uncertainty creates anxiety in the market. When clarity is lacking, the market often decides to hedge first and ask questions later.

Implications Of The EU Tariff Proposal

The tariff proposal targeting the EU—set at a much higher 50%—raises further concerns. It increases overall trade tension that could impact major S&P companies, especially those that depend on international sales and suppliers. The fact that these issues were mentioned together suggests a broader push for trade realignment rather than targeted regulations. From a volatility perspective, this raises both directional uncertainty and correlation between macro news and stock pricing. The decline in major futures indices alongside Apple suggests that this isn’t just a single-stock problem; it’s a broader market reaction. We’ve seen a shift away from growth sectors toward safer investments. For those involved in index-linked derivatives, we are adjusting our gamma exposure accordingly. The reaction time between negative headlines and order flow changes has quickened significantly, indicating a faster market feedback loop. Currently, tech-heavy index contracts show less confidence in upside calls and a clear preference for downside protection in the June and July chains. This reflects not just how participants view risk but also how quickly they want to act on it. As a result, we are focusing on opportunities in straddle decay while selectively opening short-term bear call spreads where demand remains strong. What’s evident from market trends is that attention has shifted from Cupertino to Washington. This shift tells its own story. Create your live VT Markets account and start trading now.

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