Apple Stock Sell-Off Continues After China Unveils Matching Tariffs

[MacRumors]

Apple stock dropped 4% in early Friday trading, broadly following yesterday's trend after China announced reciprocal tariffs in response to U.S. President Trump's trade policies.

The latest decline follows Thursday's dramatic 9% plunge that erased nearly $300 billion from Apple's market value – the company's worst single-day performance in five years – amid growing fears that Trump's trade war will hurt the global economy. Apple's market value was expected to be reduced further today as markets processed China's matching 34% tariff announcement.

China's finance ministry announced it would impose a matching 34% tariff on U.S. imports starting April 10, one day after Trump's new duties take effect. The country also restricted exports of rare earth elements critical for technology manufacturing and added 11 American businesses to its "Unreliable Entity List."

Trump's "Liberation Day" tariff plan particularly threatens Apple, which relies heavily on Chinese manufacturing despite years of diversification efforts. The 54% effective rate on Chinese imports combines the new 34% tariff with an existing 20% charge.

Countries where Apple has been expanding its supply chain, including India, Thailand, Malaysia, and Vietnam, were also targeted with tariffs above Trump's global baseline rate of 10%.

Analysts warn Apple faces difficult choices ahead, potentially needing to raise U.S. hardware prices by approximately 30% to offset the tariff impact or accept significant hits to its profit margins.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Apple Stock Sell-Off Continues After China Unveils Matching Tariffs

 

[Audit13]

Apple may choose to not do anything with respect to prices in the near-term until current stock in the USA has dwindled and, perhaps by then, there will be a clearer picture as to when the import tariffs will be lifted or reduced.

 

[CalMin]

Apple is going to have to raise prices if this holds. Get your $999 MacBook Air while stocks last.

 

[npmacuser5]

China no pushover. What the old school leaders cannot understand, we are not all powerful in any aspect. The rest if the world has caught up to us economically and militarily.

 

[Mactech20]

I am sure everyone will be polite and civil in this thread. Certainly nothing mean, rude, or unhinged.

 

[I7guy]

It’s a good thing Mr. Cook emphasized Apple doesn’t manage to stock prices prices. But is AAPL holders.🤷‍♂️

 

[ignatius345]

Trumpcession, incoming in 3, 2....

 

[Madhatter32]

Apple's risk management department and CEO have failed the company. The writing has been on the wall for a decade with respect to Apple's over reliance on China.

 

[xmlninja]

At least windows users can enjoy atmos in Apple Music now

 

[Devyn89]

lol, lmao even.

 

[TxExCxH]

Don’t forget to say thank you.

 

[Zarniwoop]

Wait until the EU and Japan countermeasures are announced. They make quite a big slice of Apple pie.

 

[CharlesShaw]

Perhaps Apple can get an exemption if they agree to make changes that agree with the new administration's agenda. Stuff like removing apps about science and history from the App Store, and content on Apple TV+ and Apple News that is contrary to the agenda.

Edit: Or perhaps the incoming NSA director can have a back door into encrypted data on iCloud. That might be enough.

 

[chrono1081]

If history had taught us tariff wars are a bad thing...oh wait it did.

 

[rp2011]

I'm hoping Trump reverses himself quickly. None one will question it. Hopefully, there are enough sane people in the administration to humor him enough to make it happen. What worries me most is that if some of these tariffs go into effect, companies will see people get used to the higher prices and not lower prices if/when the tariffs are removed.

 

[Anaxarxes]

Apple's risk management department and CEO have failed the company. The writing has been on the wall for a decade with respect to Apple's over reliance on China.

Apple has been diversifying manufacturing to US, Brazil and India in the past 5 years. What are you on about?

 

[atomwork]

The real problem is the loyalty to shareholders to generate max profits each quarter. Otherwise these tariffs wouldn't a problem longterm if we get lower or zero income taxes. I'm sure the Fed will lower interest rates now.

 

[delsoul]

Maybe companies should quit overly relying on China for cheap everything. Wouldn’t be in this predicament if they didn’t sell out for a quick buck, euro, pound, etc

 

[DelayedGratificationGene]

All this means for Longs is Apple gets to buy back a ton more stock. 👍

 

[Capeto]

Is this what winning looks like?

 

[spazzcat]

The market is in a sell off for the second day, it isn't just Apple. The market is going through a correction because people know we're going into a recession.

 

[Starflyer]

It wont be as bad as when they shut down the world economy a few years ago for COVID. How much did Apple increase prices then? This would be a good time to hang on to your current phone/computer and purchase cheap stocks.

 

[DelayedGratificationGene]

US hardware sales only account for 6-7% of eps. Thats it. Apple can easily cut that in half by passing on a moderate price increase. Man what a buying opportunity here. I sdded

 

[iObama]

Apple has been diversifying manufacturing to US, Brazil and India in the past 5 years. What are you on about?

Exactly. And the countries they diversified to have even higher tariffs. This has nothing to do with Apple, this has everything to do with a low-IQ, narcissistic dictator imposing economy-decimating policies on a whim.

 

[SW3029]

Trump is an idiot