Apple has suffered record losses in the stock market due to new tariffs imposed by the Donald Trump administration. The company's market capitalization fell by more than $300 billion on Thursday, the largest single-day drop in the iPhone maker's history. The company's shares fell 9%, reducing its market capitalization from $3.36 trillion to $3.05 trillion.
This was reported by URA-Inform, citing the Financial Times .
Trump has hit Apple's largest suppliers and manufacturing hubs in Asia, including China, Taiwan, India, and Vietnam, with new tariffs on goods imported into the U.S. The tariffs hit nearly every model of the company's products, including the iPhone, iPad, and Mac. That leaves Apple with a tough choice: either raise prices on its products or accept additional costs that could significantly reduce the company's profitability.
“If Apple fails to avoid Chinese tariffs, the company will face significant financial losses, especially if it fails to pass the costs on to consumers,” analysts said.
Apple also faces a 9% drop in gross margins if it doesn't find ways to avoid the tariffs. That would also affect manufacturing in other countries, such as Vietnam and India, where the iPhone and other Apple products are made.
Amid these economic challenges, the company is already facing competitive pressure in the important Chinese market, where its iPhone sales have declined. Combined with additional tariffs on components and manufacturing costs, Apple will have to find new ways to get out of the crisis.
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