Apple (AAPL, Financials) faces growing risks as trade tensions between the United States and China intensify, according to TF International Securities analyst Ming-Chi Kuo.
Kuo said the company could weather higher tariffs if they are limited to the United States by shifting supply and adjusting prices. But if U.S. allies also raise barriers, Apple would be forced to speed up moving production out of China — a shift he called risky and hard to control.
The warning follows a fresh round of tariffs from the Trump administration, which raised duties on Chinese goods to as much as 145%. China has responded with 125% tariffs on some U.S. products, new restrictions on strategic mineral exports, and a complaint at the World Trade Organization.
Apple has made early moves into India and Vietnam, but Kuo said the company remains heavily reliant on China, especially for iPhone assembly. Broad-based tariffs could hit Apple's supply chain and margins before it can fully diversify, he said.
While some analysts say full U.S.–China economic decoupling remains unlikely, Kuo cautioned that the short-term risks for Apple are rising sharply.
