Tech stocks plummeted on Thursday, with Apple (AAPL) leading the “magnificent seven” name following President Trump’s mutual tariff announcement the previous day.
Apple’s stock notched on its worst day since March 2020 after its share price cratered more than 9% and erased more than $300 billion from its market capitalization. According to analysts, the biggest risks are centered around iPhone manufacturers’ overseas production hubs. This is particularly vulnerable to customs countries.
Read more about Apple’s stock movements and market action today.
Nearby: April 3rd, 4:01pm EDT
On Wednesday, Trump announced tariffs affecting around 185 countries, including the largest US trading partner. For example, additional mutual tariffs include a 34% tariff on Chinese imports, a 20% tariff on European Union imports, a 46% tariff on Vietnam imports, a 32% tariff on Taiwan imports, all scheduled to come into effect on April 9th.
In particular, an additional 34% tax on China will be added to the country’s existing 20% tariff. This means that the total tariff rate will rise to 54%. China is Apple’s most important production hub, with around 85% of iPhones being manufactured there.
“Apple basically produces all iPhones in China. The issue is about exceptions and exemptions from this customs policy, like Apple announced in February, if those companies are building more businesses, factories and plants in the US.”
As trade tensions escalated, Apple moved to increase supply chains beyond China alone, boosting manufacturing in places like India and Vietnam. However, there is limited room for grace as new tariff announcements have been set to affect these countries as well.
“The worries are about pricing and margin impacts, along with what the global supply chain is looking forward to,” Ives said. For now, analysts continue to believe that if companies try to navigate “this new world of tariffs,” there will be major negotiations over the next few months.
Until then, he warned that “tech stocks will clearly be under heavy pressure.”
Seven other epic players also faced important sales action. Collectively, the cohort of stocks excluded more than $1 trillion from the organization’s market capitalization, according to Bloomberg data analyzed by Yahoo Finance.
Finally, Amazon (AMZN) and Meta (Meta) each fell around 9%, in line with Apple, with Nvidia (NVDA) stock down 8% and Tesla (TSLA) followed by a 5% drop. Alphabet (GOOGL) fell 4%, while Microsoft (MSFT) exceeded more than 2%.
The story continues
