After President Trump said he would impose at least 25% tariffs on Apple (AAPL) if iPhones sold in the U.S. are not manufactured domestically, Citi analyst Atif Malik said that assuming 25% tariffs on all U.S. product imports as a bear case would lead the firm to estimate about 130 basis points incremental gross margin impact, or 4% incremental EPS impact in FY26. However, its base case assumes 20% tariffs on China and 10% on India, and it assumes Apple passes one-third of the incremental costs to customers and suppliers. The firm has a Buy rating and $240 price target on Apple shares, which are down nearly 3% to $196.04 in early afternoon trading.
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