Apple Stock Plummets 18.95% in Three Days as Trade War Intensifies, Trading Volume Hits Third Highest

On April 7, 2025, Apple (AAPL) experienced a significant decline, dropping by 3.67% and marking its third consecutive day of losses, with a cumulative decrease of 18.95% over the past three days. The trading volume for Apple reached 286.03 billion, making it the third highest in the market that day.

Apple faced substantial challenges due to the escalating trade war with China. President Trump's announcement of a potential 50% tariff hike on Chinese goods, effective from Wednesday, has raised concerns about the impact on Apple's business. The company is particularly vulnerable to these tariffs, as a significant portion of its supply chain and manufacturing operations are based in China.

Market volatility was exacerbated by conflicting reports about a potential 90-day tariff pause. Initially, rumors of a pause led to a brief relief rally, but the market quickly reversed course after the White House refuted these claims. This volatility has contributed to the overall sell-off in tech stocks, with Apple being one of the hardest hit.

Analysts have noted that Apple's underperformance compared to other tech giants is due to its heavy reliance on Chinese manufacturing and the potential disruption to its supply chain. The company's stock has been particularly sensitive to trade-related news, and the recent developments have only added to investor concerns.

Despite the challenges, some analysts remain optimistic about Apple's long-term prospects. The company's strong brand and innovative products continue to drive demand, and its financial health remains robust. However, the near-term outlook is clouded by the ongoing trade tensions and market volatility.