Apple’s $300 Billion Meltdown: Trump Tariffs Wipe Out Record Market Value

Apple just suffered the biggest one-day wipeout in its history. The iPhone maker lost more than $300 billion in market value after US President Donald Trump imposed sweeping new tariffs on imports from Asia, directly impacting Apple’s global supply chain.

Shares of Apple fell over 9% in New York on Thursday, sending its market capitalisation tumbling from $3.36 trillion to $3.05 trillion. The dramatic sell-off came despite CEO Tim Cook’s long-standing efforts to stay in the administration’s good graces, including personal meetings with Trump and a pledge to invest $500 billion in the US.

Trump Tariffs Hit Apple’s Global Supply Chain

The new tariffs target goods from China, Taiwan, India, and Vietnam—home to over 90% of Apple’s manufacturing. Every major Apple product, from iPhones to iPads and MacBooks, now faces higher import costs.

The president’s executive order made no exceptions for Apple. That leaves Cook with a tough choice: raise prices on already high-end electronics or absorb the extra costs, which could slash billions from the company’s future profits.

“This is a direct hit to Apple’s bottom line,” said a tech analyst at Citi. “The tariffs could significantly affect margins and shake investor confidence.”

A Test of Tim Cook’s Strategy

Cook has spent years cultivating ties in Washington, even facing internal backlash for attending Trump’s 2017 inauguration. Apple had previously secured tariff exemptions during Trump’s first term—but this time, the White House has drawn a hard line.

Apple declined to comment on whether it’s pursuing another exemption, leaving investors and customers alike guessing how the company will respond.

Meanwhile, countries like Vietnam and India, which Apple has been shifting production to, will also see tariffs of 46% and 26%, respectively—limiting Apple’s flexibility to pivot its supply chain quickly.

What This Means for Consumers and Investors

The immediate question for consumers: Will Apple devices become more expensive? Analysts suggest that to maintain profit margins, the company may have no choice but to pass some of the costs on to buyers.

For investors, Thursday’s crash was a stark reminder of how deeply geopolitical decisions can impact even the world’s most valuable companies. With the 2024 US election approaching and Trump signaling a more aggressive economic stance, more tech firms could face similar challenges.

Apple’s Future Under Pressure

Despite promising to create 20,000 jobs and build new AI infrastructure in the US, Apple is still vulnerable due to its heavy reliance on overseas manufacturing.

For now, all eyes are on how the company will navigate the economic fallout of the new tariffs—and whether Cook’s strategic balancing act between Silicon Valley and Washington can hold.

Source Financial Times}

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