President Donald Trump’s announcement of new tariffs ranging from 10% to 49% on imported goods caused Apple to plummet more than 6% in late trading on Wednesday, leading a wider drop in tech companies.
China and a few other Asian nations produce the majority of Apple’s products, which account for the company’s revenue. While electric vehicle manufacturer Tesla had a 4.5% decline, Nvidia, which produces new chips in Taiwan and assembles its AI systems in Mexico and other countries, saw a roughly 4% decline.
Microsoft saw a nearly 2% decline, while Alphabet, Amazon, and Meta all saw declines of 2.5% to 5% throughout the remainder of the megacap world.
Apple’s stock would have had its largest slide since September 2020 if its postmarket loss was replicated in Thursday’s normal trade.
On Wednesday afternoon, Trump declared that the new import duties would be a “declaration of economic independence” for the nation. In accordance with the tariffs they impose on U.S. exports, Trump declared a 10% general duty on all imports and higher levies for particular nations, such as 34% for China, 20% for European countries, and 24% for Japanese goods.
In his speech, Trump declared, “We will break down foreign trade barriers, open foreign markets, and supercharge our domestic industrial base.” “More domestic production will ultimately result in more competitive markets and cheaper prices for consumers.”
Trump’s announcements had a negative impact on stocks generally. An ETF that tracked the Nasdaq 100 dropped over 3%, while an ETF that tracked the S&P 500 fell 2.8%.
Trump commended Apple, Meta, and Nvidia for their investments and financial expenditures in the US during his speech.
Trump declared, “Apple is going to spend $500 billion; they have never spent that much money here.” “This is where they will construct their plants.”
Although the tech-heavy index increased in each of the first two days of the second quarter, the Nasdaq recently concluded its worst quarter since 2022, falling 10% over the first three months of the year.
