Apple Inc (NASADAQ:AAPL) suppliers in Asia took a hit after US President Donald Trump tweeted that the tech titan should start making its products in the US to avoid tariffs on Chinese imports.
The company had submitted a letter to US trade officials outlining the impact of the proposed tariffs on Chinese goods.
"Our concern with these tariffs is that the U.S. will be hardest hit, and that will result in lower U.S. growth and competitiveness and higher prices for U.S. consumers," wrote Apple in the letter, as per a Reuters report.
While accessories like the Apple Watch and Airpods have been hit by the tariffs, iPhones have so far been exempt.
However, Trump threatened on Friday that he could place an additional US$267bn worth of tariffs at a moment’s notice.
The following morning the President tweeted that Apple’s prices may increase as a result of the tariffs unless production is moved to the US.
Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now. Exciting! #MAGA— Donald J. Trump (@realDonaldTrump) September 8, 2018
Indices in China, Hong Kong and Taiwan fell as Asian suppliers, especially in China and Taiwan, felt the ripple effect.
Shares of Apple barely budged, rising less than a percent to US$221.98 in Monday pre-market trading.
Apple is gearing up for its annual presentation on Wednesday and is expected to announce three new iPhones as well as a few other new products.