Apple stock faced scrutiny from former US President Donald Trump, who criticised the company’s decision to invest in Indian production. Trump expressed his expectations that iPhones for the US market should be manufactured domestically and threatened a 25% tariff if not. As a consequence, Apple’s shares dropped 4% in premarket trading.

Despite a previous exemption for Apple when relocating production from China to India, this did not appease Trump. Previously, Apple had pledged a $500 billion investment in the US when Trump assumed office. A recent meeting between Apple’s CEO Tim Cook and Trump was not detailed by either party.

Impact On Apple Stock

In the same social media post, Trump criticised the EU for creating trade imbalances, pointing to a $235.6 billion trade deficit for goods with the US. Trump announced plans for a 50% tariff on the EU starting June 1. Apple stock now trades below significant support levels, indicating a bearish outlook. Apple’s stock remains below its 50-day and 200-day SMAs, and major US indices futures have seen a decline, suggesting potential further losses for the tech giant.

Given the recent premarket slump in Apple’s share price—a sharp 4% move likely triggered more by its geopolitical exposure than fundamentals—the timing here should not be overlooked. Trump’s rhetoric around shifting iPhone manufacturing back to the United States carries more weight than mere campaign bluster, at least from the standpoint of market reaction. The specific threat of a 25% tariff is highly material in terms of impact on margins, production planning, and supply chain stability. Whether or not the former president’s proposal will be enacted is secondary to the fact that the risk is now being priced in, and it’s visible in the tape.

Apple trading beneath both 50-day and 200-day simple moving averages already signalled a weakening trend, but this fresh political element amplifies the downside exposure. Sellers now appear more willing to press their advantage while buyers remain cautious. Derivatives follow-through tells us a lot more than spot prices alone. Watching closely, we’ve seen implied volatility widen in out-of-the-money puts across near-term expiry chains. That usually reflects growing protection demand, not just speculation.

The meeting between Cook and Trump, though not officially reported in detail, should be interpreted as a failed attempt to lobby or potentially assuage concerns. That silence doesn’t sit well with many in the market. Uncertainty breeds premium. When the market can’t get clarity, it tends to hedge first and ask questions later.

Implications Of The Eu Tariff Proposal

The tariff proposal directed at the EU—for a much broader 50% rate—fans even more anxiety. It heightens systemic trade tension that could affect multiple S&P heavyweights, particularly those reliant on international sales and suppliers. The fact that the announcement was in the same breath further cements the idea that this isn’t targeted regulation—it’s a much wider push on trade realignment. From a volatility perspective, that raises both directional uncertainty and correlation between macro headlines and equity pricing.

Major futures indices down in tandem with Apple reinforces that this may not remain a single-stock issue. It’s broader risk-off positioning. We’ve observed positions rotating out of growth sectors and into defensives. For those operating in index-linked derivatives, we’re adjusting our gamma exposure in response. The reaction timing between headline drops and order flow tightening has shortened noticeably, meaning the market’s feedback loop is getting faster.

For now, contracts in the tech-heavy indices are showing lower conviction on upside calls, combined with a notable skew toward downside protection in the June and July chains. This informs us not just how participants view risk, but the speed and degree they’re willing to trade on it. As such, we’re seeing opportunity mainly in straddle decay harvests while selectively opening short-term bear call spreads where the bid remains firm.

What’s clear from the tape: Eyes are now on Washington more than Cupertino. That tells its own story.

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