Tech Stocks Drop as Apple Falls Following Trump’s Tariff Move

Tech stocks took a hit after President Donald Trump announced new tariffs on imported goods. Apple led the decline, dropping more than 6% in extended trading. Other major tech companies, including Nvidia and Tesla, also saw losses.

Trump’s decision introduced a 10% blanket tariff on all imports, with higher rates for specific countries. Chinese imports face a 34% tariff, European nations 20%, and Japanese imports 24%. These tariffs aim to boost domestic production but have raised concerns about supply chains and rising consumer costs.

Apple’s Stock Plummets 

Apple, heavily reliant on overseas manufacturing, felt the immediate impact. The company assembles most of its products in China and other Asian countries. As a result, investors reacted strongly, leading to a sharp drop in stock value.

• Apple shares fell 6% after the announcement.
• Nvidia, which produces chips in Taiwan and Mexico, dropped 4%.
• Tesla lost about 4.5%.
• Alphabet, Amazon, and Meta declined between 2.5% and 5%.
• Microsoft’s stock fell nearly 2%.

Expert Reactions and Market Concerns 

Industry experts worry these tariffs could disrupt supply chains and reduce demand for tech products. Dan Ives, a Wedbush analyst, described the move as a major challenge for the industry. “Tech stocks will face strong pressure after this announcement,” Ives said. “There are serious concerns about demand, supply chains, and especially how these tariffs affect the China-Taiwan relationship.”

Other analysts predict companies will pass higher costs onto consumers, making devices more expensive. They also warn that China could respond with its own tariffs, creating more challenges for U.S. businesses.

Apple Faces Manufacturing Challenges 

Despite efforts to move production away from China, Apple remains vulnerable. The company has shifted some operations to India and Vietnam, but both countries are also affected by new tariffs. India faces a 26% tariff, while Vietnam’s imports will be taxed at 46%.

Morgan Stanley analysts estimate Apple’s profits could drop by 7% next year, translating to an $8.5 billion loss. CEO Tim Cook has previously negotiated tariff exemptions, but the Trump administration has signaled it will not allow individual exemptions this time.

What’s Next for Tech Stocks? 

Investors will closely watch how tech companies respond. Some may adjust production strategies, while others could push for policy changes. The market’s reaction in the coming days will indicate whether the sell-off continues or stabilizes.

Trump framed the tariffs as a necessary step for economic independence. “We will supercharge our domestic industrial base, open foreign markets, and break down trade barriers,” he said. However, critics argue the move could hurt consumers and businesses alike.

The tech sector now faces an uncertain future as companies navigate these new trade policies. Investors and analysts will continue monitoring how tariffs impact profits, production, and global supply chains.

Stay informed on the latest news with OverHereSF.

More…

• https://www.bnnbloomberg.ca/investing/2025/04/02/apple-shares-slide-after-tariffs-threaten-to-hit-production-hubs/
• https://fortune.com/2025/04/03/apple-leads-decline-tech-stocks-trump-sweeping-new-tariffs/
• https://www.nbcnewyork.com/news/business/money-report/apple-leads-drop-in-tech-stocks-after-trump-tariff-announcement/6210183/