Apple's stock dropped by 6% after Donald Trump announced fresh import duties. This is the largest drop in the company's value since September 2020.
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Other technology companies besides affected the decline: Nvidia lost 4%, Tesla – 4.5%, Alphabet, Amazon and Meta from 2.5% to 5%, and Microsoft – almost 2%.
What happened April 2, 2025 U.S. president Donald Trump announced fresh customs duties on imported goods, calling that day the ‘Day of Liberation’. The basic work is 10% for all imports but Canada and Mexico and will apply from 5 April. Additional country-specific duties, including 20% for the EU, 24% for Japan and 34% for China, will enter into force from 9 April.
Countries afraid by the fresh duties:
- European Union: 20%
- China: 34%
- Japan: 24%
- South Korea: 25%
- India: 26%
- Vietnam: 46%
- Sri Lanka: 44%
- Cambodia: 49%
https://x.com/WhiteHouse/status/1907533090559324204
Apple products can get better By The fresh York Times Apple produces about 90% of its iPhones in China. The company besides partially moved production to India and Vietnam, trying to reduce its dependence on Chinese factories. However, India and Vietnam are now on the list of countries with the highest work rates.
According to analysts, Morgan Stanley these changes can increase Apple's yearly costs by around $8.5 billion, which represents about 7% of the company's yearly net profit.
Apple has 2 possible solutions to this problem:
- Raise product prices to compensate for fresh costs.
- Take on additional costs, which will reduce profits and may even lower share value.
Apple has so far effectively obtained tariff exemptions in the USA, but Trump's fresh decision does not supply specified exceptions for any company, including Apple.
