Apple stock dropped 4% in early Friday trading, broadly following yesterday's trend after China announced reciprocal tariffs in response to U.S. President Trump's trade policies.
The latest decline follows Thursday's dramatic 9% plunge that erased nearly $300 billion from Apple's market value – the company's worst single-day performance in five years – amid growing fears that Trump's trade war will hurt the global economy. Apple's market value was expected to be reduced further today as markets processed China's matching 34% tariff announcement.
China's finance ministry announced it would impose a matching 34% tariff on U.S. imports starting April 10, one day after Trump's new duties take effect. The country also restricted exports of rare earth elements critical for technology manufacturing and added 11 American businesses to its "Unreliable Entity List."
Trump's "Liberation Day" tariff plan particularly threatens Apple, which relies heavily on Chinese manufacturing despite years of diversification efforts. The 54% effective rate on Chinese imports combines the new 34% tariff with an existing 20% charge.
Countries where Apple has been expanding its supply chain, including India, Thailand, Malaysia, and Vietnam, were also targeted with tariffs above Trump's global baseline rate of 10%.
Analysts warn Apple faces difficult choices ahead, potentially needing to raise U.S. hardware prices by approximately 30% to offset the tariff impact or accept significant hits to its profit margins.
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