TRUMP TARIFFS SLAM APPLE, WIPING OUT $250 BILLION IN MARKET VALUE

Thu 03 April 2025:

Apple’s market value plummeted by over $250 billion on Thursday, marking it as one of Wall Street’s hardest-hit victims of Donald Trump’s aggressive tariff campaign, even after CEO Tim Cook’s attempts to build ties with the administration.

The iPhone giant’s stock dropped by up to 8.5% at the opening of trading in New York on Thursday, slashing its market cap from $3.37 trillion to $3.12 trillion.

Trump imposed steep new tariffs on imports from Apple’s key Asian supplier and manufacturing bases—China, Taiwan, India, and Vietnam—disrupting the company’s supply chain..

The aggressive move will impact nearly all Apple devices and accessories. The US President’s economic plans force Apple’s CEO, Tim Cook, to choose between increasing prices on high-end electronics or absorbing the added costs, potentially wiping out tens of billions of dollars in profits. Notably, Apple recently committed to hiring 20,000 new employees and investing $500 billion in the US over four years, including a new Texas facility for AI server manufacturing.

Trump’s tariffs, including a 10% universal rate and higher levies like 25% on Canada and Mexico or 54% on China, aim to boost American manufacturing and reduce the trade deficit. They’ve raised federal revenue—projected at $290 billion in 2025—while protecting some industries like steel. However, they come at a cost.

The average household faces an extra $2,100 annually due to higher prices on imports like cars, electronics, and groceries. Inflation is ticking up, with forecasts rising from 2.5% to 2.7%, and economic growth is slowing—projections drop from 2.8% in 2024 to 1.7% in 2025. Jobs?

Mixed results—some manufacturing gains, but losses in sectors like retail and agriculture due to retaliatory tariffs from trading partners. Global trade tensions are sparking fears of a broader trade war, rattling markets and weakening the dollar. It’s a high-stakes gamble: short-term wins for some, but long-term pain for many.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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