Tesla And Apple Face Brand-New Wrecking Ball—Thanks To Trump

President Donald Trump's latest salvo on trade policy has rattled markets, and auto giants like Tesla Inc. TSLA and big tech like Apple Inc. AAPL may bear the brunt. Trump has floated the idea of imposing 30% tariffs on imports from the European Union and Mexico, two regions that play a crucial role in both companies’ global supply chains and revenue streams.

For investors, the risk isn't just theoretical – it could mean real pressure on margins, pricing and stock performance.

Apple's Mexican Lifeline Could Snap

Apple relies increasingly on Mexico for final assembly and component manufacturing, including parts for iPhones, MacBooks, and AirPods. While most of its core manufacturing is based in China, Apple has been actively diversifying its supply chain to mitigate geopolitical risk.

Ironically, these new tariffs could penalize the very diversification strategy that they aim to support. Higher import costs from Mexico could squeeze Apple's margins or force it to pass the costs on to consumers, which is never a good look in a competitive smartphone market.

The EU also represents a significant revenue pool for Apple, with Europe accounting for roughly 24% of total sales in recent quarters. Any retaliation from the bloc could complicate pricing, tax treatment, or even product approvals.

Tesla's EU Exposure Makes It Especially Vulnerable

Tesla may be even more exposed. The company operates a gigafactory in Germany, and the EU is one of Tesla’s fastest-growing markets outside the U.S. If Trump's tariff policy triggers a trade war or reciprocal measures, Tesla could face hurdles both in exporting parts and in selling vehicles across borders. It's a tough blow just as the EV maker is trying to defend market share against BYD Co BYDDF BYDDY and legacy automakers.

Investors should pay close attention: while tariffs may not be imminent, the political narrative could impact capital flows and sentiment around multinationals with cross-border footprints.

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