Shares of several Apple suppliers listed on Chinese stock exchanges tumbled collectively on Monday (May 26), following U.S. President Donald Trump's announcement of a new 25% tariff on imported iPhones.

Shares of Luxshare, the assembler of iPhones and AirPods, fell by 2.2%. Meanwhile, Lens Technology, which manufactures iPhone screens, saw its shares drop by 1.8%.

Goertek, the company that produces AirPods, also experienced a decline, falling 1.1%, according to a Reuters report on Tuesday (May 27, 2025).

On Friday (May 23), President Trump threatened to impose a 25% tariff on iPhones sold in the U.S. that are not manufactured domestically.

This new tariff measure is not exclusive to Apple; it applies to all phone manufacturers that sell their devices in the U.S. without having production facilities located within the country.

The move is part of the U.S. government's broader agenda to boost domestic manufacturing. Apple had previously been affected by threats of a steep 145% tariff on goods imported from China.

In response, Apple accelerated its efforts to relocate its iPhone manufacturing from China to India. However, this step has not fully satisfied Trump, who insists that iPhones should be produced in the United States.

It’s worth noting that the 145% tariff on Chinese imports is currently under a 90-day suspension, following a recent U.S.–China agreement reached in Geneva, Switzerland.

This temporary reprieve gave Apple more time to shift its manufacturing operations to India. However, the new phase of the trade war initiated by Trump is now specifically targeting electronics manufacturers, including Apple.

Previously, Apple had outlined plans to expedite the transfer of iPhone production for the U.S. market from China to India, aiming to complete the move by 2026. Given the latest tariff announcement, Apple may need to rethink its strategy.

Trump has emphasized that while Apple is permitted to move its production to India, iPhones made there will still be subject to a 25% tariff if sold in the U.S.