Apple (AAPL) Stock in Tariff Trouble? Here’s What Bank of America Says

Joshua Ramos
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Entering any year for more than a decade, Apple (AAPL) was always set to be a company that dominated Wall Street. Currently the leading company by market cap, the iPhone developer has had a tough 2025 thus far. But will it get even tougher? With Apple’s stock facing incoming 10% tariffs, Bank of America speaks on the potential impact.

Outside of the ongoing trade tensions taking place with the US, the tech company hasn’t had a thriving first month of the year. In January, its iPhone was dethroned in China, losing significant market share. Moreover, the product was facing an Indonesian ban that concerned many investors. So, are the Donald Trump-imposed tariffs yet to be another dose of bad news?

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Source: entrepreneur.com

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Apple Stock Affected by Incoming Trump Tariffs? Here’s What Bank of America Says

Entering the year, there were many who expected Apple to potentially be the first company to reach a $4 trillion market cap. The thought was reasonable, considering it had been the first to both $2 trillion and $3 trillion. However, the year has not been so kind to that pursuit.

There is now fears that the stock could face even greater challenges. As the Apple (AAPL) stock prepares for US President Donald Trump’s incoming tariffs, Bank of America speaks on the potential impact. specifically, if Wall Street should be worried.

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Source: Reuters / Wang Jiawei / File Photo

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According to the bank’s analysts, the tariff effect is expected to be “manageable” by Apple. Indeed, they project that “80% of the devices sold in the US can be sourced from outside of China.” Subsequently, that will greatly reduce the company’s exposure to incoming tariffs.

If they are able to keep prices at their current level, Bank of America projects a “negligible $0.05 negative impact to earnings.” However, they also note that there is room for Apple to raise prices by 3% in the United States. Specifically, they note the action “could be offset, even though it may sell few units in the US.”

Yet they expect Apple to “choose not to raise prices at the present time.” With most iPhones being able to be manufactured in India, Chinese tariffs should not greatly impact the company. However, Trump had previously targeted all BRICS countries with his 100% tariff plan. Therefore, its implementation could be dire for the stock as his economic policy unfolds.