A man uses a smartphone out an Apple shop in Beijing.
Nicolas Asfouri | AFP | Getty Images
Semiconductor stocks and stocks of Apple slid more than their peers in the technology industry on Friday, after President Donald Trump stated U.S. companies should “immediately start looking for an alternative” for their operations in China.
Shares of Apple fell up to 4.3%, while the VanEck Vectors Semiconductor ETF declined 3.5%. Among the chip businesses, Qualcomm slid 3.1percent and Nvidia dropped 4.8 percent, as Advanced Micro Devices fell 5.7 percent, Micron dropped 4.2percent and Broadcom slid 4.7%.
Apple has felt the effects of Trump’s trade war with China over most tech businesses. The business conducts the vast majority of its production process in China and the Chinese market represents a substantial portion of its earnings.
Trump’s remarks on Friday mark the most recent fallout from the trade war between the U.S. and China.
Markets immediately started to turn lower after Trump tweeted: “Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing..your companies HOME and making your products in the USA.”
Trump’s tweet came after China on Friday vowed to levy tariffs on $75 billion more of U.S. goods, such as autos. The new tariffs followed Trump’s plan to impose obligations on $300 billion worth of China’s merchandise by December.