By Dan Gallagher

How much has President Trump's tariff plan cost Apple? It is no longer the world's most valuable company.

That title now belongs to Microsoft, following Tuesday's closing bell. Apple's shares fell 5% for the day and are now down 23% since last week's tariff announcement. That puts Apple's market capitalization at $2.59 trillion. Microsoft, down only 7% over the same period, closed Tuesday with a market cap of $2.64 trillion.

The two companies have jostled for the top position a few times over the past five years. But Apple's market value has been solidly ahead of Microsoft's since mid-2024, as the software giant's share price began to slump on worries about its blowout AI spending relative to the potential return. Trump's tariff plan, though, has painful implications for Apple, which produces nearly all of the products it sells outside of the U.S. and will thus be exposed to sharply rising costs for the business that accounts for most of its revenue.

This analysis comes from the Journal's Heard on the Street team. Subscribe to their free daily afternoon newsletter here.

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April 08, 2025 16:59 ET (20:59 GMT)

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