Apple shares could suffer further from President Donald Trump’s higher tariff regime, according to Wedbush Securities analyst Dan Ives. The analyst – who said he’s still bullish long term on the iPhone maker and left his investment rating outperform rating – nonetheless slashed his 12-month price target by 23%, to $250 from $325. That implies almost 33% upside from current levels for Apple shares. “The tariff economic Armageddon unleashed by Trump is a complete disaster for Apple given its massive China production exposure,” Ives wrote in a note to clients on Sunday. “In our view, no U.S. tech company is more negatively impacted by these tariffs than Apple with 90% of iPhones produced and assembled in China.” Apple shares have already taken a beating in April, down 18%, after Trump last week set a 10% baseline tariff and steep new levies on specific countries, such as a 34% tariff on China. China has since announced a retaliatory tariff of 34% on U.S. imports, effective April 10. Apple is now 30% below its 52-week high in late December. AAPL YTD mountain AAPL, year-to-date Beyond the iPhone, Ives estimates that more than 50% of Apple’s Mac products and between 75% and 80% of its iPads are built in China. While Apple has made efforts to boost its U.S. manufacturing, saying in March that it will invest more than $500 billion domestically over the next four years, moving many Asian operations would prove difficult. Ives estimates it would take around three years and $30 billion dollars to move even 10% of the company’s supply chain from the region to the U.S., and sees a “major disruption in the process.” “For U.S. consumers the reality of a $1,000 iPhone being one of the best made consumer products on the planet would disappear,” Ives wrote. “Price points would move up so dramatically it’s hard to comprehend and the near-term margin impact on Apple’s gross margins during this tariff war could be mind boggling.” With uncertainty as to the level of tariffs, Ives said he doesn’t expect most tech companies, including Apple, to provide any forward financial guidance on conference calls over the next month. Uncertainty “will cause demand destruction for consumers globally,” the analyst wrote. On Friday, Ives said that Trump’s tariffs could set the U.S. tech industry back a decade . “This tariff situation is dramatically different and a very scary prospect as the current tariff slate with China at 54% and Taiwan at 32% would be devastating to Apple, its cost structure and ultimately consumer demand,” Ives wrote in the Sunday report, noting that higher tariffs turn the “supply chain upside down” at CEO Tim Cook’s company. “It’s not a debate in our view.” A majority of analysts on Wall Street remain bullish on Apple, with 32 of 47 rating its a buy or strong buy. Ten analysts rate it a hold. The consensus price target of $248 implies about 32% upside potential. Apple shares briefly plunged another 7.3% early Monday before recovering and and were recently lower by less than 1%.
