Apple’s (AAPL) shares fell more than 7% before the bell, and still leads the sale of tech stocks following a larger tariff than Trump expected.
Apple’s overseas production hubs are particularly vulnerable given the presence of iPhone manufacturers in China, Vietnam and India. These countries face customs duties of 34%, 46% and 26%, respectively, when additional taxes are taken into consideration.
“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.”
Elsewhere in high tech, chip stocks should also face significant pressure, with Nvidia (NVDA) and others exposed to supply chains in China and Taiwan.
“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.”
