Apple lost more than $300 billion due to US tariffs

Apple shares fell more than 9%, their worst day since March 2020, wiping more than $310 billion off the company’s market capitalization. Analysts say the biggest risk to Apple comes from its overseas manufacturing hubs, especially in countries that have been hit hard by tariffs.

Apple has been working to expand its supply chain beyond China, with manufacturing facilities in India and Vietnam. However, with new tariffs on those countries, the situation is becoming more difficult.

The new additional tariffs include 34% on imports from China, 20% on imports from the European Union, 46% on imports from Vietnam, 32% on Taiwan and 26% on India, all of which will take effect from April 9.

In particular, the additional 34% tariff on China will be added to the current 20% tariff, bringing the total tariff to 54%. China is Apple's main manufacturing base, with about 85% of iPhones made there.

Illustration: Unsplash

"Apple makes nearly all of its iPhones in China, and the question now is whether there can be exceptions to this tariff policy if companies like Apple invest in factories in the US, as they announced in February," said Wedbush analyst Dan Ives.

Ives stressed that the biggest concerns right now are the impact on prices and profit margins, along with the longer-term impact on global supply chains. Still, he believes that important negotiations will take place in the coming months as companies navigate the “new world of tariffs.”

But he still warned: "Tech stocks will be under a lot of pressure until things stabilize."

The Magnificent 7 stocks also faced a sharp sell-off, wiping out more than $1 trillion in market capitalization, according to data compiled by Bloomberg. Amazon and Meta fell 9%, matching Apple, while Nvidia fell 8% and Tesla fell 5%. Alphabet fell 4%, while Microsoft fell more than 2%.

Beyond the Magnificent 7, semiconductor stocks have also been hit, even though the chip industry is not directly affected by the additional tariffs. For example, Nvidia rival Broadcom lost more than $70 billion in market capitalization after its stock fell 11%.

Ngoc Anh (according to Bloomberg, Yahoo Finance)

Source: https://www.congluan.vn/apple-mat-hon-300-ty-usd-do-thue-quan-my-post341557.html