Tech Stocks Plummet After Trump Tariff Announcement, Apple Hit Hardest
The U.S. stock market experienced significant turbulence following the announcement of new tariffs by former President Donald Trump, with technology stocks taking the brunt of the impact. Apple, a leading tech giant, saw its shares drop dramatically, leading the decline in the sector. The tariffs, aimed at various imports including electronics, have raised concerns about increased costs for consumers and potential disruptions in global supply chains.
Analysts from major financial news outlets, including CNBC and Barron's, reported that the sudden policy shift caught investors off guard, leading to a sell-off in tech stocks. The Financial Times highlighted the broader implications of these tariffs, suggesting that they could escalate into a larger trade war, affecting not just the tech industry but the global economy at large.
The New York Times detailed how these tariffs specifically target Apple's iPhones, which could lead to higher prices for consumers and a potential decrease in demand. This development has sparked a debate on the effectiveness and timing of such economic policies, especially in an already volatile market environment.
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Will Apple be hit by tariffs?
Rosenblatt Securities estimated that the iPhone maker could face $39.5 billion of tariff costs, adding that 'if these costs were just eaten by Apple, we estimate a near 32% hit to operating profit and EPS, annualized.' Makers of PCs and AI servers will be hit hard as well.
Is Apple exempt from tariffs?
In 2019, Apple was granted a series of waivers to avoid a 15% tariff on its flagship products including the iPhone, iPad, and MacBook range in 2019.
Is Nvidia affected by tariffs?
Nvidia (NVDA), TSMC (TSM), and other chip stocks fell Thursday following President Trump's announcement of sweeping reciprocal tariffs set to affect the semiconductor supply chain. Nvidia stock dropped over 5%, while rival Advanced Micro Devices (AMD) declined by about 4%.
Are iPhones made in China?
The majority of Apple's iPhones are still assembled in China by partner Foxconn . China accounts for around 80% of Apple's production capacity, according to estimates from Evercore ISI in a note last month. Around 90% of iPhones are assembled in China, Evercore ISI said.
