By Adam Clark

Apple stock was dropping again early on Monday as investors grappled with the impact President Donald Trump's tariffs will have on the iPhone maker.

Apple shares were down 3.2% at $182.40 in premarket trading on Monday. That made it the second-worst performing of the Magnificent Seven stocks, outdone only by a 5.3% slump for electric-vehicle maker Tesla.

The rest of the group of megacap stocks, comprising Microsoft, Meta Platforms, Alphabet, Amazon.com and Nvidia, were down between 1%-3%.

As Barron's has written, Apple is particularly vulnerable to tariffs due to its international supply chain and the potential for its hardware or services sales to be hit hard by other countries' retaliation.

"The reality is it would take 3 years and $30 billion dollars in our estimation to move even 10% of [Apple's] supply chain from Asia to the U.S. with major disruption in the process," wrote Wedbush analyst Dan Ives in a research note on Sunday.

Ives cut his price target on Apple to $250 from $325 previously, although he kept an Outperform rating on the stock.

Goods coming from China -- where the vast majority of iPhones are manufactured -- now face 54% after the latest tariff announcements. Apple has expanded production to other countries apart from China such as Vietnam and India, but the broad tariffs will also hit Vietnamese-made goods with a 46% levy and Indian exports with a 27% rate.

In 2019, 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. There is no indication, so far, that it has received a similar exemption from the latest tariffs.

Write to Adam Clark at adam.clark@barrons.com

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April 07, 2025 08:20 ET (12:20 GMT)

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