Salesforce Stock Plunges 4.8% on Trump Tariff Concerns

On April 4, 2025, Salesforce's stock price dropped by 4.8% in pre-market trading, reflecting investor concerns over the potential impact of new tariffs announced by the Trump administration. The tariffs, which include a 10% base rate and additional retaliatory duties on certain countries, are expected to affect global trade dynamics and could have significant implications for companies like Salesforce that rely on international supply chains and markets.

Analysts have highlighted that the new tariffs could increase the cost of goods and services, potentially leading to higher prices for consumers and businesses. This could, in turn, affect the demand for Salesforce's cloud-based solutions, which are used by a wide range of industries and companies. The company's commercial cloud, which accounts for 7.5% of its total subscription revenue, is particularly vulnerable to these changes, as it relies heavily on international trade.

Additionally, the tariffs could disrupt the supply chains of Salesforce's partners and customers, leading to delays and increased costs. This could further impact the company's ability to deliver its services efficiently and effectively. The tariffs are also expected to affect the broader technology sector, which could lead to a decrease in demand for Salesforce's products and services.