Trump's new tariffs hit Apple hard on Thursday. The company lost $250 billion in market value as shares fell by 8.5%. Other tech companies saw their stocks tumble as well. Many experts say Apple must raise iPhone prices to deal with these tariffs. The new taxes start April 5, giving companies little time to adjust.
Apple suffered more than most competitors from these changes. Tesla, NVIDIA, and Meta went down by 6%, with Amazon falling 7.2%. China faces a huge 54% tariff rate, and Vietnam must pay 46%. Apple must either absorb these costs or pass them on to customers. Either way, they face major problems. Analyst Ming-Chi Kuo thinks Apple could lose between 8.5% and 9% of its yearly revenue if it keeps current prices.
Kuo suggests Apple might make more iPhones in India if that country receives tariff exemptions. Another option involves raising prices on premium models. This means the iPhone 17 Pro and Pro Max might cost much more for American buyers. Apple hasn't said anything about these tariffs yet. Tim Cook will probably meet with President Trump soon to ask for lower rates or exemptions.
Trump might not change his mind about China tariffs, but he could reduce them for other countries where Apple makes products. The company needs to find solutions fast as April approaches. These tariffs affect almost every tech business, but Apple's heavy reliance on international manufacturing makes it especially vulnerable. Consumers should prepare for higher prices or companies taking financial hits.
Apple suffered more than most competitors from these changes. Tesla, NVIDIA, and Meta went down by 6%, with Amazon falling 7.2%. China faces a huge 54% tariff rate, and Vietnam must pay 46%. Apple must either absorb these costs or pass them on to customers. Either way, they face major problems. Analyst Ming-Chi Kuo thinks Apple could lose between 8.5% and 9% of its yearly revenue if it keeps current prices.
Kuo suggests Apple might make more iPhones in India if that country receives tariff exemptions. Another option involves raising prices on premium models. This means the iPhone 17 Pro and Pro Max might cost much more for American buyers. Apple hasn't said anything about these tariffs yet. Tim Cook will probably meet with President Trump soon to ask for lower rates or exemptions.
Trump might not change his mind about China tariffs, but he could reduce them for other countries where Apple makes products. The company needs to find solutions fast as April approaches. These tariffs affect almost every tech business, but Apple's heavy reliance on international manufacturing makes it especially vulnerable. Consumers should prepare for higher prices or companies taking financial hits.
