Apple Hit by New U.S. Tariffs on Global Production, Stock Plunges 7.9%

The new reciprocal tariffs target existing duties, raising rates on Chinese imports to 34%—bringing Apple’s total China-related tariff exposure to 54%. This could severely impact its China-centric supply chain.

Other manufacturing hubs are also affected: India (26% tariff), Vietnam (46%), Malaysia (24%), Thailand (36%), and Ireland (20%). These countries produce various Apple products like iPhones, AirPods, Macs, and iPads.

Investors were rattled by the announcement. Apple’s stock fell 7.9% in after-hours trading and is down 11% year-to-date, reflecting broader tech sector losses.

The tariffs take effect April 9. Analysts warn Apple’s profit margins could shrink, as it's unlikely to raise prices amid weak consumer sentiment.

During Trump’s first term, CEO Tim Cook successfully lobbied to exclude key Apple products from tariffs. Earlier this year, Apple pledged $500 billion in U.S. investment over four years, including AI servers in Texas and limited chip production in Arizona. However, large-scale domestic manufacturing remains minimal.