Apple Inc. Faces Sharp Decline

In a startling premarket development, Apple Inc. shares experienced a significant 7% drop. This downturn followed the announcement by US President Donald Trump of aggressive new tariffs targeting over 180 countries, a move that has sent shockwaves through global markets.

The Tariff Impact on Apple's Supply Chain

The newly imposed tariffs are poised to heavily disrupt Apple's supply chain, which remains deeply entrenched in China. Despite Apple's recent strides towards diversification, approximately 90% of iPhones are still manufactured in China. This reliance places Apple in a precarious position, especially with the introduction of a new 34% tariff on Chinese imports, compounding the existing 20% rate.

Market Reaction

By 5:37 am ET, the repercussions were already evident, with Apple's shares falling by 7.31% to $207.52, underscoring the immediate market sensitivity to these trade policies.