Apple Inc. Faces Significant Challenges

In a dramatic premarket-hours trading session on Thursday, Apple Inc. shares experienced a sharp decline of 7%. This downturn came immediately after US President Donald Trump unveiled a series of aggressive new tariffs targeting over 180 countries.

The Ripple Effect on Apple's Supply Chain

These comprehensive tariffs are poised to have a profound impact on Apple's supply chain, which is predominantly based in China. Despite Apple's recent endeavors to diversify its manufacturing locations, approximately 90% of iPhones are still assembled in China. This heavy reliance makes Apple especially susceptible to the newly imposed 34% tariff on Chinese imports, which is in addition to the existing 20% rate.

Market Reaction

By 5:37 am ET, Apple's shares had dropped by 7.31%, settling at $207.52. This significant drop underscores the market's immediate reaction to the potential financial strain these tariffs could place on Apple's operations and profitability.