U.S. President Donald Trump suggested that 10 per cent tariffs could be placed on mobile phones, like the iPhone and laptops made in China, dealing a potential blow to Apple Inc.

“Maybe. Maybe. Depends on what the rate is,” Trump told the Wall Street Journal in an interview. “I mean, I can make it 10 per cent, and people could stand that very easily.” Apple stock fell about 1.6 per cent in extended trading following the comments.

The U.S. is due to raise import duties on about US$200 billion worth of goods from China to 25 per cent from 10 per cent on Jan. 1. The vast majority of iPhones and other Apple products are built in China and then exported globally.

So far, Apple’s most lucrative devices, like the iPhone and iPad, have been left out of U.S. tariffs. Earlier this year, Apple said products like the Apple Watch and AirPods would be affected before the U.S. said it wouldn’t impose taxes on such items. Still, the company warned in September, that other items, like the Mac mini, Apple Pencil stylus, and some cables and cases, could be harmed.

The company has made a small percentage of older iPhone models in Brazil and India in recent years, in part to avoid local taxes on imported goods.