Skip to main content

Apple supplier shares slide after Trump tells tech giant to make products in U.S.

Shares of Apple Inc suppliers fell across Asia on Monday after U.S. President Donald Trump tweeted that the tech giant should make products in the United States if it wanted to avoid tariffs on Chinese imports.

Trump’s comment came after Apple told U.S. trade officials on Friday that proposed tariffs by Washington in an escalating trade war with China would affect prices for a “wide range” of Apple items, including the Apple Watch. It did not mention the iPhone.

Shares in China-based Apple suppliers Luxshare Precision Co Ltd, Shenzhen Sunway Communication Co Ltd and Suzhou Dongshan Precision Manufacturing Co Ltd all dropped as much as 10 per cent.

Story continues below advertisement

Lens Technology Co Ltd, Universal Scientific Industrial Shanghai Co Ltd and Suzhou Anjie Technology Co Ltd fell between 6 and 8 per cent.

In Taiwan, camera lens-maker Largan Precision Co Ltd slid nearly 8 per cent, Foxconn, formally known as Hon Hai Precision Industry Co, fell 3.4 per cent, while assembler Pegatron Corp dropped nearly 4 per cent.

Taiwan’s ASE Technology Holding Co Ltd, which counts Apple as one of its top clients, fell 2.9 per cent.

Chien Bor-yi, an analyst at Taipei-based Cathay Futures Consultant, said Apple’s component supply chain in Taiwan would take a major hit if the United States increased tariffs on Chinese imported products.

“People have concerns about the stock market. It’s not a seller’s market, but it’s also not a buyer’s market. No one knows how deep the well is,” he said.

The technology sector is one of the biggest potential losers in the $200 billion tariff list proposed by Washington on Chinese imports because the tariffs would make imported computer parts more expensive.

Trump warned on Friday that he was ready to slap tariffs on virtually all Chinese imports into the United States, threatening duties on a further $267 billion of goods.

Story continues below advertisement

Hong Kong-listed AAC Technologies fell more than 5 per cent. The company supplies acoustic components and haptic technology - which enables users to receive tactile sensations from an interface - for Apple products such as the iPhone, iPad and Apple Watch.

In Japan, Nissha eased 0.4 per cent, Japan Display fell 0.7 per cent and Sharp Corp dropped nearly 1 per cent.

“People are in a bit of a panic today. Looking forward, the focus would be on how the market reacts after Apple releases its latest models,” said Kevin Chung, analyst at JihSun Securities Investment Consulting.

This content appears as provided to The Globe by the originating wire service. It has not been edited by Globe staff.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • All comments will be reviewed by one or more moderators before being posted to the site. This should only take a few moments.
  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed. Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments.

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.
Cannabis pro newsletter