Apple’s stock took a sharp hit in after-hours trading on Wednesday after the United States unveiled sweeping new tariffs, including a 34% levy on Chinese imports. The policy shift, part of President Donald Trump’s broader trade overhaul, threatens to upend Apple’s global supply network.
With the new tariffs bringing the total levy on Chinese goods to 54%, Apple faces rising production costs, as much of its manufacturing remains in China. The tariffs, set to take effect on April 9, also impact Apple’s operations in other parts of Asia, complicating its efforts to diversify beyond China.
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Apple’s stock tumbled nearly 8% in post-market trading, deepening its year-to-date decline. Analysts warn that the company’s profit margins could shrink, as passing higher costs to consumers may be risky amid fragile market conditions.
Despite pledging $500 billion in US investments, Apple remains largely reliant on overseas production. With fears of a broader trade war escalating, supply chain disruptions and rising costs could further shake global markets in the coming weeks.
