Apple loses $310 billion amid tariff-induced sell-off; worst drop since March 2020, impacting tech stocks significantly.
In Short
Tech stocks plummeted on Thursday, with Apple suffering a 9% drop following Trump’s tariff announcement, resulting in over $310 billion loss in market capitalisation.
This situation underscores growing trade tensions, as Apple faces challenges diversifying its supply chain amidst new tariffs impacting its key production countries.
Tech stocks dropped significantly on Thursday, with Apple leading the decline after President Trump’s tariff announcement.
Apple shares fell over 9%, marking the worst performance since March 2020, which resulted in a loss exceeding $310 billion in market capitalisation. Analysts have pointed out that Apple’s overseas production facilities are highly susceptible to these tariff changes.
Trump’s tariff plan affects around 185 countries, including major trading partners, with specific tariffs imposed on imports from China, the EU, Vietnam, Taiwan, and India, set to begin on April 9. The new 34% tariff on China compounds the existing 20% rate, leading to a total of 54%, which is critical for Apple as approximately 85% of its iPhones are produced there.
Analysts have raised concerns regarding exceptions and exemptions for companies wishing to establish manufacturing in the US, which Apple has previously announced.
As trade tensions grow, Apple is diversifying its supply chain by increasing production in India and Vietnam. However, the new tariffs also target these countries, limiting options for Apple.
Concerns about pricing, margins, and global supply chain implications remain prevalent in the market. The overall impact of these tariffs is expected to exert significant pressure on tech stocks going forward.
Overall, other major technology companies also faced losses, with the group collectively losing nearly $913 billion in market capitalisation.
