Apple plans to shift the assembly of all US-sold iPhones to India as soon as next year. The push builds onApple’s strategy to diversify its supply chain but goes further and faster than investors appreciate, with agoal to source from India the entirety of the more than 60 million iPhones sold annually in the US by theend of 2026. The target would mean doubling the iPhone output in India, after almost two decades inwhich Apple spent heavily in China to create a world-beating production line that powered its rise into a$US3 trillion ($4.7 trillion) tech giant. China is where Apple manufactures the majority of its iPhones viathird parties such as Foxconn.
Walmart and Target executives have privately warned the White House that sweeping tariffs will causeempty store shelves and price hikes within weeks. In a closed-door meeting with President DonaldTrump, their CEOs warned him that his aggressive trade policy would disrupt supply chains. 'We had aproductive meeting with President Trump and his team and appreciated the opportunity to share ourinsights,' Walmart said.
Auto industry executives are warning of severe damage to the US auto sector as a result of the TariffWar. [It’s worth remembering that up to 70% of auto parts used by US auto manufacturers come fromoverseas countries like Canada and Mexico, Japan and Korea.]Volkswagen AG’s earnings dropped by 40% in the first quarter as higher manufacturing costs cut intomargins and US tariffs clouded the German carmaker’s outlook. Earnings before tax came in at €3.1billion ($3.5 billion) in the three months through March, down from €5.1 billion a year earlier, thecompany said Wednesday. Group operating margin fell to 3.7% from 6%.
Atlassian Corp Plc (TEAM) shares plunged 17% after hours on much weaker revenue guidance for thefourth quarter. This shows you The Street is very nervous about high flying growth stocks who disappointon revenue guidance.
Meanwhile, US imports from CHINA are down 60% in the past week, equalling a $24bn/month hole insupply chains. By June there may be many empty shelves.
Ludicrous comments from Scott Bessent that it’s up to China to de-escalate the trade war were taken asexactly that – ludicrous comments from an incompetent buffoon. U.S. tourism is being hit hard asgovernment data show a roughly 10% decline in visitors arriving by air in March 2025 from the yearbefore. Many Europeans and Canadians will never visit the US again.
UPS [a large US package delivery and logistics provider with a market cap. of US$69bn] announced that itis eliminating 20,000 roles this year and closing 73 facilities. The company is cutting staff afterannouncing earlier this year that it would be doing less business with Amazon.
General Motors (GM) lowered its 2025 earnings guidance to include a possible $4 billion to $5 billionimpact of tariffs. GM said its new guidance includes adjusted EBIT of between $10 billion and $12.5billion, down from between $13.7 billion and $15.7 billion. The Detroit automaker, along with Americanketchup maker Kraft Heinz, Swedish appliances maker Electrolux, airline JetBlue Airways and other blue-chip names, on Tuesday joined the diverse list of companies that have pulled forecasts for 2025 orslashed outlooks – further evidence that Trump’s see-sawing trade policy is taking a major toll onbusinesses’ ability to plan beyond the immediate term.
Amazon is raising prices and may label the hikes tariff driven, but Trump gave Bezos a blast so he pulledthe directive.
