Apple is the hardest-hit U.S. technology company by President Donald Trump’s hiked-up tariffs on China, according to Wedbush analyst Dan Ives. While Trump this week scaled back tariff plans on most other countries, he has pushed the levy on China up to 145%. China has raised its tax on goods from the U.S. to 125% in response, bolstering fears of a burgeoning trade war between the two large countries. “No [U.S.] tech company is more negatively impacted by these tariffs than Apple,” Ives wrote to clients on Friday. About 90% of iPhones are manufactured and assembled in China, according to the analyst. If these tariffs remain in place for more than a few weeks, he said U.S. consumers can see iPhone prices jump to at least $2,000. Beyond the iconic smartphone, Ives estimated that more than 50% of Apple’s Macs and between 75% and 80% of its iPads are also produced in China. “Apple has diversified its supply chain to other parts of the world,” he added, citing Vietnam, India and the U.S. as examples. But “the hearts and lungs of the Apple supply chain are cemented in Asia.” AAPL 1M mountain Apple shares in April Ives’ estimate comes as Wall Street and Silicon Valley wonder how Apple will respond to the stark change in trade policy, which the analyst referred to as an “Armageddon.” Apple shares have tumbled more than 14% so far in April, making it the worst performer in the “Magnificent Seven” during this period. The White House asserted this week that the U.S. is up to the task of producing the iPhone domestically , but supply chain experts and analysts have said that is a highly unlikely outcome of the tariffs. Ives previously said a U.S.-made iPhone would cost around $3,500 . “Apple is in the eye of this storm,” Ives wrote. “Cupertino has no choice but to price iPhones at $2k+ if these tariffs stick for more than a few weeks.” Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
