Trump Tarifs: A big shock to Apple from Trump’s new tariff, stock 7% dropped, threat to supply chain!
New Delhi:
After the announcement of US President Donald Trump’s new reciprocal tariffs, Apple’s shares saw a huge decline. Aapl stock fell by 7% in trading late on Wednesday night, causing a decline in the tech sector. Investors are afraid that these tariffs may affect Apple’s supply chain badly.
Why is Apple being harmed?
Trump has announced to impose new tariffs from 10% to 49% on imported products coming from China, Vietnam, Taiwan, Japan and South Korea. Especially China has been charged 34% additional tax, due to which the total import duty has reached 54%. Since most of Apple’s products are made in China and Asian countries, the production cost will increase.
Apple’s shares fall drastically
Apple’s stock fell from $ 223.89 to $ 211.32, which has shown a decline of 11% so far this year. In December 2024, this stock was at a high of $ 260.08, but has so far declined by about 20%. Market expert believes that if the situation does not improve, then this stock may fall to $ 200.
Crisis on supply chain, will prices increase?
The biggest challenge for Apple is that most of its products are made in China and it will become expensive to import from the new tariff. In countries like Vietnam and India, the company also shifted production, but these countries have also been imposed 46% and 26% tariffs, which can worsen the situation.
Trump’s policy stirred up tech industry
This decision of Trump administration can affect not only Apple, but the entire tech industry. Apart from Apple, stocks of Tesla, Qualcomm, Nvidia and other companies also saw a decline. Tesla also declined by 6%. Amazon fell 5.5%, while Microsoft and Alphabet fell by about 2.5%. Meta shares also fell 4%. Meanwhile, the market’s favorite stock Nvidia broke 4.4%.
In the coming weeks, it will be interesting to see how Apple will deal with this situation. Will the company plan to shift its supply chain out of China or will continue the production there despite the new tariff.
