On Thursday, Apple experienced a significant decline in market value, losing over $250 billion as the company’s shares fell by as much as 8.5%. This downturn was attributed to President Donald Trump’s introduction of new tariffs.
The tech sector faced considerable pressure on Wall Street as investors moved away from volatile assets, leading to a decline in stocks for companies such as Tesla, Nvidia, and Meta, which decreased by 6%, and Amazon, whose shares dropped by 7.2%.
On Wednesday afternoon, President Trump announced comprehensive tariffs of at least 10%, with certain countries facing even higher rates. Specifically, China’s total tariff rate increased to 54%. Analysts from Wedbush Securities described these tariffs as “worse than a worst-case scenario” for tech investors.
The White House has stated that these tariffs are not intended as a negotiation tool but rather a necessary step to enhance domestic manufacturing. President Trump described the tariffs as an effort to “liberate” the American economy.
The new tariffs are expected to impact all of Apple’s major suppliers and manufacturing centers in Asia, including those in China, Taiwan, India, and Vietnam, despite efforts by CEO Tim Cook to establish a favorable relationship with the administration. Consequently, every model of iPhone, iPad, Mac, and accessory sold by Apple will be affected. Cook is faced with the decision to either increase consumer prices or absorb the losses, which could result in the elimination of tens of billions in potential profits.
