Apple Stock Down As Trump Imposes 10% Tariff On Chinese Goods

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Apple Stock Down As Trump Imposes 10% Tariff On Chinese Goods
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President Trump has placed a 10% tariff on the $300 billion of Chinese goods imported in to the U.S., Apple Inc. (NASDAQ:AAPL) stock has reacted negatively to this news. Below are the comments from analysts on how the tariffs will impact iPhone sales and Apple’s FY20 EPS.

BofA Merrill Lynch

Apple stock reacted negatively to the mid-day announcement that the U.S. will impose 10% tariffs on an incremental $300bn of goods imported into the U.S. Our back of the envelope math suggests the impact will be roughly $0.50-$0.75 (annualized) hit to earnings with roughly $0.30-$0.50 from iPhones. In the broader context of the tailwinds that Apple has we view this as a relatively small amount over the next several quarters and would use the pullback as an especially attractive opportunity to buy shares of Apple.