Apple stock drops almost 10% on market open in reaction to new tariffs

Apple is a US-based company that relies heavily on a global supply chain to manufacture its products. As a result, the tech firm’s stock seems to be getting hit especially hard by the new tariffs just announced yesterday, with AAPL down almost 10% upon the market’s open today—a big hit to Apple.

Apple has grown revenue from its services business consistently for years, but at its core, the company is still very much financially dependent on hardware.

The iPhone, iPad, Mac, Apple Watch, AirPods, and the company’s other highly successful products are designed by Apple in California, but by and large manufactured overseas.

Now, with President Trump’s sweeping tariffs on imports worldwide, Apple’s core business could take a huge hit.

The tariffs are especially high in places where Apple keeps much of its supply chain, including China, India, Vietnam, and more.

Last night in after-market trading, Apple’s stock fell 7%. As my colleague Ben wrote:

Today as the market opened, AAPL was initially down 8% but is currently trading around $203—an even further dip that’s getting close to 10%.

There’s still a lot of uncertainty around whether Trump might grant exemptions for Apple like happened during his first term, when the company was spared the worst tariffs so that foreign competitors like Samsung wouldn’t gain an edge over the US-based Apple.

But so far at least, Wall Street seems to believe Apple could have a hard time ahead.

Do you think Apple will raise its product prices if the tariffs go into effect? Let us know in the comments.