Apple Stock Plunges 6.77% on Trump's New Tariffs
1min read On April 3, 2025, Apple's stock experienced a significant drop of 6.77% in pre-market trading, reflecting investor concerns over the impact of new tariff policies announced by U.S. President Donald Trump.
Trump's latest tariff policy, which includes a 10% baseline tariff on all countries and additional higher tariffs on countries with the largest trade deficits with the U.S., has raised alarms among investors. The new tariffs, set to take effect on April 9, will impact Apple's global supply chain, as the company relies heavily on manufacturing in countries like India, Vietnam, Malaysia, Thailand, and Ireland.
Apple's efforts to diversify its production across multiple countries to mitigate the risks of trade wars and supply chain disruptions have been undermined by the new tariffs. The company now faces the prospect of increased costs and potential profit reductions, as it will either have to absorb the tariffs or pass them on to consumers through higher prices.
Analysts have expressed mixed views on the potential impact of the tariffs on Apple's financial performance. While some believe that the company's strong brand and ecosystem may help it weather the storm, others are more pessimistic, predicting a significant hit to Apple's profit margins and earnings per share.
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Despite the immediate market reaction, some analysts remain optimistic about Apple's long-term prospects. They point to the company's high gross margins and the potential for cost-sharing across its supply chain as factors that could mitigate the impact of the tariffs. Additionally, there is hope that the U.S. government may engage in further negotiations to address the tariff issue in the coming months.
