On Friday, May 23, Wedbush analyst Dan Ives rebuked President Donald Trump’s announcement of a special tariff on Apple Inc. (NASDAQ:AAPL) iPhones.

In a bold move that could escalate tariff tensions, President Donald Trump demanded that Apple and other smartphone makers manufacture their phones in the United States- or face a 25% tariff instead.

“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.” -Trump posted Friday morning on Truth Social.Dan Ives Fires Back: Trump’s Apple Plan Needs ‘Herculean Logistics’

Apple shares fell 3% as investors reacted to this unbelievable development of a specific tariff on the tech company.

In a Friday note, Ives mentioned how Trump’s demand to shift production to the U.S. is “not realistic” since it would take at least 5 to 10 years to onshore manufacturing.

“We believe the concept of Apple producing iPhones in the [U.S.] is a fairy tale that is not feasible.” -Dan Ives.

Given the logistical requirements, Ives believes that there is “no chance” that this production can happen in the near term. Only “Herculean-like supply chain logistics” could make it possible, he noted. He also reminded that an American-made iPhone would have a price tag of around $3,500.

Ives maintained his “Outperform” rating on Apple with an above-average price target of $270. A key reason behind his optimism is his belief in CEO Tim Cook’s experience navigating politics and also his negotiation skills, particularly now that iPhone 17 production is looming close.

While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AAPL and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 12 AI Stocks Making Waves on Wall Street Today and 15 AI Stocks Surging on News and Analyst Ratings.

Disclosure: None.

View Comments