CNBC analyst Jim Cramer has been supportive of the new economic policy introduced by US president Donald Trump, enforcing tariffs on several nations. The tariff plan heavily hurt the US stock market in the past week, and it has now been paused for 90 days. Despite the pause, the US is still enforcing heavy tariffs on China, which slams on several US companies that have direct relationships with exports from the country. One of these, Apple (AAPL), has seen its stock take a hit over the past week amid the US-China tariff trade war.
Speaking on his CNBC show Mad Money recently, Cramer gave his verdict on Apple Stock amid the US-China trade battle. He expressed concern over rising costs from overseas manufacturing and questioned whether the company or its partners would absorb the financial impact. On Monday’s show, Cramer discussed how Apple products will get more expensive due to the tariffs. “These tariffs are going to be a killer,” he said. “According to an analysis at the Wall Street Journal, Trump’s tariffs will take the cost of an iPhone 16 Pro from 550 to around 850, and that’s not counting the new tariffs he threatened to unleash on China today.”
Apple Suffers From China Tariffs
Furthermore, Apple Inc. (AAPL) has a big manufacturing presence in China, which was hit with an over 100% import tax. This is the likely reason why it has seen the biggest fall-off among the Mag-7 companies. Thus, investors and even Apple itself are panicking to rescue the company’s resources and value. This week, Apple reportedly loaded up 5 planes full of iPhones and other products to avoid paying the new US tariffs. The decision allowed Apple to have some safety supply of the devices in the US, which are mostly built in Asia.
“The reserves that arrived at lower duty will temporarily insulate the company from the high prices that it will need to pay for new shipments under the revised tax rates,” a source said. With a majority of its products being manufactured in China, Vietnam, and India, the shipments should help keep prices low for now.
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AAPL stock is trading near the bottom of its 52-week range and below its 200-day simple moving average. Amid the tariff turmoil, it’s leading the fall-off for big tech in the past month. While some experts suggest that the dip won’t last for long and you should buy the dip, many also suggest that the worst is yet to come. Should the trade war between the US and China continue throughout the year, Apple (AAPL) may be one of the biggest casualties.