Apple Loses $250B: Tariffs Impact Tech Stocks

Apple's Market Value Plummets Following New Tariffs

Apple experienced a significant decline in market value on Thursday, losing over $250 billion. This downturn coincided with a substantial drop in share prices, falling by as much as 8.5% due to the imposition of tariffs by President Donald Trump.

Impact on Tech Stocks

The iPhone manufacturer was among those most affected on Wall Street, as technology stocks generally declined. Investors began reallocating capital away from assets perceived as risky.

Several prominent tech companies saw their stock values decrease. Tesla, Nvidia, and Meta each registered a 6% decline, while Amazon shares fell by 7.2%.

Details of the New Tariffs

President Trump announced comprehensive tariffs on Wednesday, setting rates of at least 10% on a wide range of imports. Certain countries, notably China, face even higher tariffs, reaching a total rate of 54%.

These tariffs are scheduled to take effect on April 5th. Analysts at Wedbush Securities characterized the tariffs as exceeding even the most pessimistic expectations for tech investors.

White House Justification

The White House maintains that these tariffs are not intended as a negotiating strategy. Instead, the administration asserts they are essential for strengthening domestic manufacturing capabilities.

President Trump described the tariffs as a measure to “liberate” the American economy.

Apple's Supply Chain at Risk

The substantial tariffs imposed on imported goods to the U.S. will impact Apple’s entire supply chain. This includes key suppliers and manufacturing centers throughout Asia, encompassing China, Taiwan, India, and Vietnam.

Despite CEO Tim Cook’s attempts to engage with the administration, all Apple products – including every iPhone, iPad, Mac, and accessory – will be affected by these new levies.

Potential Consequences for Apple

Apple now faces a critical decision: either increase prices for consumers or absorb the costs, potentially resulting in billions of dollars in lost profits.