Apple Inc. Faces Significant Challenges

Apple Inc. shares experienced a sharp decline of 7% in premarket-hours trading on Thursday. This downturn followed the announcement by US President Donald Trump of aggressive new tariffs affecting over 180 countries, with a significant focus on China.

Impact on Apple's Supply Chain

The new tariffs, which include a 34% increase on Chinese imports atop an existing 20% rate, are expected to heavily impact Apple's supply chain. Despite Apple's efforts to diversify its production locations, approximately 90% of iPhones are still assembled in China, leaving the company particularly vulnerable to these changes.

Market Reaction

By 5:37 am ET, Apple's shares had dropped by 7.31%, trading at $207.52. This market reaction underscores the potential financial strain these tariffs could place on Apple and its investors.