Apple Plunges 7.31% on Trump's New Tariffs

On April 3, 2025, Apple's stock experienced a significant drop of 7.31% 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 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 includes production facilities in India, Vietnam, Malaysia, Thailand, and Ireland. These countries are expected to face significant tariff increases, ranging from 20% to 46%, which could lead to higher production costs and reduced profitability for Apple.

Analysts have expressed mixed views on the potential impact of these tariffs. Some believe that Apple's strong brand and loyal customer base may help mitigate the effects, while others are more pessimistic. Wedbush analyst Daniel Ives noted that investors often react quickly to such news, leading to sharp sell-offs. However, he also pointed out that Apple has a history of navigating tariff challenges and may find ways to manage the increased costs.

Despite the immediate market reaction, some analysts remain optimistic about Apple's long-term prospects. CFRA's Angelo Zino highlighted that Apple's gross margins have been expanding, providing some buffer against the new tariffs. Additionally, there is speculation that the White House may engage in negotiations to address the tariff situation in the coming months, potentially easing some of the pressure on Apple.