Apple Stock Plunges 7.14% on Trump's New Tariffs
1min read On April 3, 2025, Apple's stock experienced a significant drop of 7.14% 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, which includes production facilities in India, Vietnam, Malaysia, Thailand, and Ireland. These countries are expected to face tariffs ranging from 20% to 46%, significantly increasing the cost of production for Apple's products.
Ask Aime: What is the potential impact of new tariff policies on Apple's stock price and global supply chain?
Apple, which has no manufacturing facilities in the U.S. and relies heavily on overseas production, is particularly vulnerable to these tariffs. The company has previously benefited from tariff exemptions during Trump's first term but has not been granted similar exemptions this time. This has led to concerns about potential profit reductions and increased product costs, which could be passed on to consumers.
Analysts have expressed mixed views on the impact of these tariffs. Some believe that Apple's strong brand and ecosystem may help mitigate the effects, while others predict a potential 7% drop in profits for the company next year. The situation remains fluid, with ongoing discussions and potential negotiations that could influence the final outcome.
