Apple Plunges 7.06% on Trump's New Tariffs

On April 3, 2025, Apple's stock experienced a significant drop of 7.06% 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 imports and higher, individualized tariffs on countries with the largest trade deficits with the U.S., has sent shockwaves through the market. The new tariffs, set to take effect on April 9, will impact Apple's global supply chain, as the company relies heavily on manufacturing in countries like India, Vietnam, Malaysia, Thailand, and Ireland.

Investors are worried about the potential impact on Apple's profits, as the company may face increased costs due to the tariffs. Apple's products, including iPhones, AirPods, iMacs, and other devices, are primarily manufactured in these countries, making the company particularly vulnerable to the new tariff policies.

Analysts have expressed concerns that the new tariffs could lead to a 7% decrease in Apple's profits for the next year. The company may either absorb the increased costs, leading to a reduction in profits, or pass on the costs to consumers through price increases, which could affect demand for its products.

Despite the market's negative reaction, some analysts remain optimistic about Apple's ability to weather the storm. The company's strong brand and extensive ecosystem of services, which currently account for about 21% of its total net sales, could help maintain customer loyalty even if prices increase.