Apple Plunges 7.07% on Trump's New Tariffs

On April 3, 2025, Apple's stock experienced a significant drop of 7.07% in pre-market trading, reflecting investor concerns over the impact of new tariffs announced by U.S. President Donald Trump.

Trump's latest tariff policy, which includes a 10% baseline tariff on all countries and additional higher tariffs on countries with the largest trade deficits with the U.S., has raised alarms among investors. The new tariffs, set to take effect on April 9, will impact Apple's global supply chain, which relies heavily on manufacturing in countries like India, Vietnam, Malaysia, Thailand, and Ireland. These countries are now subject to significant tariffs, ranging from 20% to 46%, which could increase Apple's production costs and potentially reduce its profit margins.

Apple's efforts to diversify its supply chain beyond China have been undermined by the new tariffs, which will affect multiple countries where the company produces its products. This has led to concerns about the potential impact on Apple's earnings, with some analysts predicting a 7% drop in profits for the next year. The company may face challenges in absorbing these additional costs without passing them on to consumers, which could affect its brand appeal and customer retention.