Apple stock took a sharp hit on Thursday, May 23, 2025, dropping 3% in index futures after President Donald Trump said he would impose a 25% tariff on iPhones that aren’t made in the United States. This announcement shook investors, especially those tied to tech and manufacturing stocks, sparking a wave of volatility across major indexes like the Nasdaq, Dow Jones, and S&P 500.

As of May 23, 2025, Apple Inc. (NASDAQ: AAPL) is trading at $201.36, reflecting a 0.80% decline from the previous close. This represents a 19.4% drop year-to-date, with a 52-week high of $260.10 and a 52-week low of $169.21.

Why is Apple stock down today and what triggered the drop?

Apple (AAPL), one of the world’s most valuable companies, saw its stock futures drop as much as 4% in early premarket trading, before leveling to a 3% fall, according to Investing.com. The reason? A fresh round of tariff talk from Donald Trump.
Speaking at a campaign event, Trump stated that if re-elected, he would place a 25% tariff on all iPhones that are not assembled in the U.S. The tech giant currently relies heavily on Chinese and Southeast Asian manufacturing, especially with Foxconn and Pegatron playing major roles in Apple’s production chain.

Investors immediately responded to this potential threat to Apple’s global operations and profit margins. The stock move, which wiped billions in market cap, also rattled other major tech stocks and weighed on sentiment across the Nasdaq.

How is the broader stock market reacting to Trump’s iPhone tariff threat?

The fallout didn’t stop at Apple. The Nasdaq fell 0.4%, while Dow Jones and S&P 500 futures slipped 0.3%. Traders were already nervous about Trump’s broader economic agenda, and this added more fuel to the fire.

On top of the iPhone tariffs, Trump has hinted at a 50% tariff on European goods, with a start date of June 1, 2025, if trade talks fail. This is part of his push to bring manufacturing back to the U.S., but many investors fear it could spark retaliation and disrupt supply chains globally.

Adding to the pressure, a $2.7 trillion tax-and-spending plan backed by Trump is drawing scrutiny. Moody’s recently downgraded the U.S. credit outlook, citing ballooning deficits. These policy shifts are rattling market confidence and increasing risk across all sectors.

What’s next for Apple, tech investors, and the 2025 market outlook?

Apple’s future may depend on how it adapts to potential changes in trade policy. The company has already expanded production in India, and CEO Tim Cook recently visited the country to strengthen Apple’s manufacturing footprint there. However, a tariff this large would still cause short-term disruptions and likely higher consumer prices.

If the proposed tariffs materialize, expect ripple effects across other electronics makers, chip manufacturers, and even U.S. retailers who sell Apple products. Apple closed the day at $201.36, down 0.80%, but investors are bracing for more volatility.

From a broader perspective, markets are showing signs of caution. With Trump’s aggressive trade policies back in the spotlight, investors are rethinking their exposure to multinational tech firms.