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.