Trump’s trade war is gutting Apple’s supply chain

President Trump’s trade war is gutting Apple’s supply chain, leaving the iPhone maker vulnerable to losses at home and across its global production pipeline as calls for reshoring grow louder.

Apple (AAPL) was the biggest loser among the Magnificent Seven last week, suffering its worst drop since 2020 following Trump’s “Liberation Day” tariffs.

Losses deepened this week. AAPL sank 8.5% between Monday and Tuesday and is down more than 20% over the past five trading days — a 28% slide year to date.

But the real carnage may be in Apple’s supply chain. Shares of its Asian suppliers crashed between 14% and 32% on Monday.

Obscure names like Cowell, Q Tech, AAC Technologies Holdings, TK Group Holdings, Sunny Optical, and Tongda Group all posted steep losses on the Hong Kong Stock Exchange.

In Taiwan, Apple partners Taiwan Semiconductor Manufacturing and Hon Hai Precision Industry — better known as Foxconn — also saw double-digit declines.

Stateside, Apple’s domestic suppliers Qorvo and Skyworks Solutions have been in free fall.

While no Big Tech firm is safe from Trump’s sweeping tariffs, analysts say Apple’s sprawling global supply chain has made it especially vulnerable to the shifting economic order.

Caught in the crosshairs

For years, Apple leaned into globalization, offshoring production to cut costs and boost efficiency. Today, the company taps more than 50 countries and regions to build its devices.

Now that competitive edge has become a massive liability.

“Apple has nowhere to hide. No matter where they’re making their technology, they’re going to be suffering. They’re going to see higher costs,” said Eric Harwit, a professor at the University of Hawaii at Manoa.

In the meantime, Apple is trying to cushion the damage by shifting some iPhone production from China to India.

Both countries face stiff tariffs, but India’s 26% levy looks much better next to the 54% — now 104% — duty on Chinese-made goods.

As The Wall Street Journal reported, Apple’s hardware costs could jump from $300 to $550 per unit if it keeps iPhone 16 Pro production in China.

Even with some rerouting, analysts say Apple is nowhere close to bringing production back to the U.S. The math just doesn’t work.

“If consumers want a $3,500 iPhone, we should make them in New Jersey or Texas,” Wedbush wrote in a research note.

That’s over three times what an iPhone 16 Pro costs now, a price tag even the most loyal, diehard Apple fans might struggle to justify.