Apple Stock Plunges 7.5% as New Tariffs Threaten Supply Chain

 

Apple shares fell 7.5% in premarket trading on Thursday, making it the worst-performing stock among the Magnificent Seven tech giants following President Donald Trump’s "Liberation Day" tariff announcement. With new duties of up to 54% on Chinese imports, Apple’s heavy reliance on China for manufacturing puts it at greater risk than its industry peers.

Tech Stocks Face Turbulence Amid New Tariffs

The broader stock market reacted negatively to the sweeping trade restrictions:

S&P 500 futures dropped 3.4%

Dow Jones Industrial Average futures declined 2.8%

Nasdaq futures, which are heavily weighted toward tech, signaled a drop of more than 3%

Among tech leaders, Apple faced the steepest decline, as concerns about supply chain disruptions and cost pressures mounted.

Apple’s Heavy Exposure to China Increases Its Risk

Apple’s manufacturing footprint in China makes it especially vulnerable to the new trade barriers:

90% to 95% of all Apple products are produced in China.

Foxconn (Hon Hai Precision Industry), the world’s largest iPhone manufacturer, remains Apple’s key partner.

Even as Apple shifts production to Vietnam and India, those countries also face 46% and 27% tariffs, respectively.

With these new tariffs, Apple’s production costs are expected to rise sharply, potentially cutting into margins and pressuring consumer prices.

No Immediate Waivers for Apple This Time?

During previous tariff battles under the Trump administration, Apple was granted waivers to avoid a 15% levy on its flagship products, including iPhones, iPads, and MacBooks. However, there has been no indication that similar exemptions will be granted under the current round of tariffs.

Analysts are closely watching whether Apple can negotiate exclusions, which could determine whether it absorbs the cost increases or passes them on to consumers.

Market Experts Weigh In on Apple’s Challenges

Wedbush analyst Daniel Ives noted that the tariffs could create major headwinds for Apple and the broader tech sector:
"Tech stocks will clearly be under major pressure on this announcement, with concerns around demand destruction, supply chains, and especially the China/Taiwan aspect of these tariffs."

While Apple has expanded production into other regions, the broad trade restrictions make diversification more difficult, limiting its ability to fully escape the impact of tariffs.

What’s Next for Apple and the Tech Sector?

Apple’s performance in the coming weeks will largely depend on:

Potential U.S. Policy Adjustments – Whether Apple secures any waivers or policy relief.

Supply Chain Responses – How quickly Apple can shift production out of China to minimize the tariff impact.

Consumer Demand – If price hikes are passed to consumers, demand for iPhones and other Apple products could soften.

With trade tensions rising, investors should closely monitor how Apple navigates the evolving landscape.

 Do you think Apple can mitigate these challenges, or will it face prolonged pressure? Share your thoughts in the comments.