Apple Stock Nosediving Since 'Liberation Day' Tariffs Has Created Panic, Says Gene Munster: Predicts Tim Cook's 'Favorable' Relationship With Trump, Xi Jinping Will Rescue iPhone-Maker

Apple Inc. AAPL investors have “slid into panic mode” with shares dropping 23% since Apr. 2, according to Deepwater Asset Management Managing Partner Gene Munster, who warns the situation could deteriorate further amid escalating U.S.-China tensions.

What Happened: “It’s going to get ugly with China over the next month, which will intensify the panic,” Munster wrote Tuesday on X, addressing Apple’s dramatic selloff as the White House confirmed President Donald Trump‘s 104% retaliatory tariff on Chinese imports would take effect Wednesday.

Apple shares fell 4.98% to $172.42 on Tuesday as markets reversed earlier gains following the tariff announcement, with investors concerned about potential supply chain disruptions and weakened sales in China.

Despite near-term challenges, Munster remains optimistic about Apple's long-term outlook. He believes that over the next three months, Apple will be “largely spared” from the impact of tariffs due to CEO Tim Cook's “favorable” relationships with both Trump and Chinese President Xi Jinping.

Munster also suggests that current recession fears are “already priced in.”

Over the past five trading days $AAPL investors have slid into panic mode. Shares are down 23% since April 2.

• It's going to get ugly with China over the next month, which will intensify the panic.

• My eyes are on the horizon. Looking out 3 months from now, I believe Apple…

— Gene Munster (@munster_gene) April 8, 2025

See Also: Trump Threatened TSMC He’d Impose Up To 100% Tariffs If It Didn’t Manufacture Chips In US: ‘These Chip Companies Are Loaded’

Why It Matters: The tariffs have reportedly driven U.S. consumers to Apple stores seeking to purchase iPhones before potential price increases. According to TechInsights, manufacturing costs could rise by more than 45%, potentially increasing iPhone prices from $580 to $850 per unit.

Bank of America analyst Wamsi Mohan sees Apple’s valuation compression as a buying opportunity, noting the company’s forward price-to-earnings ratio of about 21 times has historically signaled strong future returns, averaging 17% gains one year after similar drops.

“This storm will pass,” Munster said. “Apple’s brand loyalty remains strong—and will drive an Apple Intelligence upgrade cycle in FY26.”

Apple performs well on momentum and quality metrics but lags in short- to long-term price trends, according to data from Benzinga Edge Stock Rankings. Sign up to learn more.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.