- Apple’s market capitalization It plunged $700 billion as stocks were assaulted in the aftermath of Trump’s “liberation day” tariffs. The company produces most of its domestic money maker iPhones, which are uniquely exposed to Trump’s tariffs on China. According to analysts at Wedbush Securities, if the CEO can’t secure a company’s tariff exemption, as he did in the first Trump administration, if he can’t secure a company’s exemption, as he did in the first Trump administration.
Apple’s market capitalization fell apart by $700 billion in the days following Trump’s “liberation day” as investors realized how many new tariffs would be hit on Tech Giant’s biggest money maker.
Three days after Trump announced new, eye-opening tariffs on US trading partners, Apple shares plummeted 19%, the worst fall in the same period since 2001. Apple’s stock loss removed roughly $700 billion from its market capitalization, falling from around $3.3 trillion last week to $2.6 trillion from Monday. Apple’s stock price fell to $175 as of Tuesday, down 3% in afternoon trading, from $223 per share last week.
A stock defeat occurs when analysts warn that the iPhone, the company’s biggest money maker, is at great risk from President Trump’s huge intake due to the Asian supply chain. Apple secured the exemption when Trump set tariffs during initial control, but it is unclear whether CEO Tim Cook will be able to secure the same treatment this time.
“The economic armageddon of the tariffs that Trump has been unleashed is a complete disaster for Apple, given China’s massive production exposure,” a Wedbush Securities analyst led by Dan Ives wrote in a note on Sunday. “In our view, these tariffs will not adversely affect US tech companies more than Apple, which has 90% of iPhones produced and assembled in China.”
Despite Trump’s plans to use tariff pressure to bring more manufacturing into the US, analysts estimate that moving a tenth of Apple’s supply chain to the US would cost $30 billion, three years. If Apple raises costs to consumers, iPhone prices could skyrocket.
Apple’s cheapest iPhone 16 price can jump from the announced price of $799 to $1142. Reuters I reported it, citing analysts at Rosenblatt Securities. The price of the iPhone 16 Pro Max with 1 terabyte of storage could jump from $1,599 to around $2,300. Estimated.
Apple didn’t respond immediately luckRequest a comment.
Analysts say that the current tariffs at 32% in Taiwan and 54% in China would be “devastating” in particular for Apple and its costs. Trump also said Tuesday that he would track the 50% extra charge he threatened against China for retaliating against the US first tariff hike last week. If established late at night as planned, China’s cumulative tariffs will be around 104%.
Apple has diversified its supply chain from China in recent years, but Wedbush analysts estimate that, along with most iPhones, 50% and 75% to 80% of Mac products are still made in China.
According to Evercore ISI, the Tech giant has also moved production to Vietnam, including around 90% of wearables like the Apple Watch. However, Apple’s imports from Vietnam to the US will also clash with a 46% tariff for now.
Apple currently produces seven iPhones or $14 billion worth of products in India. Bloomberg It has been reported. Imports from India are still facing 26% tariff.
This story was originally featured on Fortune.com.
