Apple Faces Significant Market Drop Following Tariff Announcement

In a startling premarket movement, Apple Inc. shares tumbled by 7% as the market reacted to the latest tariff impositions by US President Donald Trump. This development underscores the tech giant's vulnerability due to its heavy reliance on Chinese manufacturing.

The Impact of New Tariffs on Apple's Supply Chain

The newly announced tariffs, targeting over 180 countries, pose a significant threat to Apple's supply chain, which remains predominantly based in China. Despite attempts to diversify, approximately 90% of iPhones are still assembled in China, making the company particularly susceptible to the increased costs.

Market Reaction and Share Price Decline

By 5:37 am ET, Apple's shares had plummeted by 7.31%, settling at $207.52. This sharp decline reflects investor concerns over the potential long-term effects of the tariffs on Apple's profitability and market position.