As Apple Remains Lagging from Tariff Shock, Cook Calls Trump and Slashes iPhone Prices Ahead of 618 Sale

TradingKey – The unexpected U.S.-China trade breakthrough sent Apple’s stock (AAPL.US) soaring over 6%, yet Apple remains the only major tech giant that has not fully recovered its losses since President Trump announced new tariffs on April 2 — “Liberation Day”. Facing mounting pressure, Apple is now taking matters into its own hands — ramping up U.S. investments and slashing iPhone prices ahead of China’s key 618 shopping festival.

On Monday, May 12, the U.S. and China jointly announced a mutual tariff cut of 110 basis points, boosting the Nasdaq Composite by 4.35%, with Apple shares surging 6.31% to close at $210.79.

After Trump unveiled sweeping new tariffs in early April, U.S. equities suffered historic declines. However, following the Geneva trade talks, the Nasdaq has rebounded into a technical bull market, with large-cap tech stocks like Microsoft rising an average of 9% from their April lows.

Apple, however, still lags behind — its share price remains about 6% below where it stood before Trump’s tariff announcement. Its path to recovery has been less smooth than its peers, possibly due to its deeply globalized supply chain and weakening consumer sentiment.

China: Apple’s Crucial Battlefield

China remains a key battleground for Apple’s flagship product — the iPhone. With the “618 Shopping Festival” just around the corner, Apple has rolled out aggressive price cuts.

According to reports, the iPhone 16 Pro 128GB, originally priced at ¥7,999 , is now available for ¥5,999 on Chinese e-commerce platforms. With additional government subsidies, consumers can even purchase it for as low as ¥5,499 — a discount of nearly ¥2,500.

Analysts say this move aims to stem the tide of declining shipments in China. In Q1 2025, Apple’s smartphone shipments in China fell 9% year-over-year , ranking fifth in the market — making it the only top-tier brand to report negative growth.

Cook Calls Trump: More U.S. Investment, Potential Price Hikes

Earlier on Monday, Apple CEO Tim Cook held a phone call with President Trump. According to Trump, Apple plans to significantly expand its U.S. manufacturing footprint, raising its total investment in the U.S. to $500 billion — far beyond its previous commitments.

However, experts warn that shifting production back to the U.S. could substantially raise Apple’s costs. Reports suggest that Apple is already considering whether to increase the price of its upcoming iPhone models later this year.

While neither Apple nor Trump disclosed further details of the conversation, the call may signal efforts to pave the way for deeper tariff reductions, especially as products made in China still face a 30% U.S. tariff, and iPhones assembled in India and Vietnam are subject to a 10% levy.