Apple Stock Tumbles on Tariff Shock. Why It’s the Hardest Hit of the Mag 7

Dow Jones
04-03

Apple stock was falling sharply early on Thursday after President Donald Trump’s tariff announcement. Its exposure to China means it potentially will face a worse hit than other large technology companies.

Apple shares were down 9.5% at $202.62 in morning trading. That made it the worst performing of the Magnificent Seven stocks, which comprise the iPhone maker as well as Microsoft, Meta Platforms, Alphabet, Amazon.com, Nvidia, and Tesla.

Apple’s underperformance is likely due to its dependence on Chinese manufacturing. Tariffs on goods made in China appear to be set at a combined 54%, although the Trump administration has given conflicting messages about the exact figure.

Between 90% and 95% of all of Apple’s products are produced in China, with Foxconn—formally known as Hon Hai Precision Industry—being the world’s largest manufacturer of iPhones. 

Apple has expanded production to other countries such as Vietnam and India but the broad range of tariffs will also hit Vietnamese-made goods with a 46% levy and Indian exports with a 27% levy.

“Tech stocks will clearly be under major pressure on this announcement as the worries about demand destruction, supply chains, and especially the China/Taiwan piece of the tariffs. Apple produces basically all their iPhones in China and the question will be around exceptions/exemptions on this tariff policy,” wrote Wedbush analyst Daniel Ives. 

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. However, so far there is no indication that it has received a similar exemption for the latest tariffs.

Apple didn’t immediately respond to a request for comment early on Wednesday. 

免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。

热议股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10