Apple Faces Significant Challenges as New Tariffs Take Effect

In a dramatic premarket-hours trading session on Thursday, Apple Inc. shares experienced a sharp decline of 7%, following the announcement by US President Donald Trump of aggressive new tariffs affecting over 180 countries. This development has sent shockwaves through the market, particularly impacting companies with substantial manufacturing footprints in China.

The Impact on Apple's Supply Chain

Apple's supply chain, which remains heavily reliant on China for the assembly of approximately 90% of its iPhones, is now under significant strain. The new tariffs, which impose an additional 34% on Chinese imports atop an existing 20% rate, pose a direct threat to Apple's production costs and profitability.

Market Reaction

By 5:37 am ET, the repercussions were clear, with Apple's shares dropping by 7.31% to $207.52. This downturn reflects growing investor concerns over the potential long-term effects of these tariffs on Apple's global operations and financial health.