Apple supplier shares slide after Trump tells tech giant to make products in US

TAIPEI: Shares of Apple Inc suppliers fell across Asia on Monday after US 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 US 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.
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.
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. — Reuters