Apple CEO Tim Cook attends the annual session of China Development Forum (CDF) 2018 at the Diaoyutai State Guesthouse in Beijing, China March 26, 2018.

Jason Lee | Reuters

Nomura Instinet lowered its price target on Apple shares to $175 from $180 on Friday, citing a coming “trade strain” on the company’s earnings.

“The renewal of China trade tensions are a likely near-term negative for Apple,” Nomura analyst Jeffrey Kvaal said in a note to investors. “A 25% tariff on device imports a pain any way they slice it.”

Nomura Instinet reduced its estimate for Apple’s 2019 earnings to $11.39 a share, down from $11.50 a share.

“Trade tension hurt China iPhone demand this winter; we would assume the same would apply again,” Kvaal said.

Additionally, Kvall said the firm does “not believe Apple would benefit materially” if Chinese competitor Huawei had its phones targeted by the U.S. in an “export ban.”

Apple shares were 1.2% lower in premarket trading from Thursday’s close of $190.08. Nomura has a neutral rating on Apple’s stock.

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