“Tech stocks” plunge after Trump announces retaliatory tariffs on Apple, market value lost by more than $3.1 billion

“Tech stocks” plunge after Trump announces retaliatory tariffs on Apple; market value loses over $3.1 billion; concerns over impact on iPhone production chain in China after China faces over 34% tariff increase

April 4, 2568 at 03.40:XNUMX a.m. Yahoo Finance reported that technology stocks fell sharply on April 4, 68, with Apple leading the decline of the Magnificent Seven after US President Donald Trump announced retaliatory tariffs on April 3, 68 (Thailand time).

Apple shares fell the most since March 2563, falling more than 9%, wiping $310,000 billion off its market cap. Analysts say the main risk lies with Apple's overseas manufacturing hubs, which are particularly vulnerable to new tariffs targeting those countries.

On April 3, 68, Trump announced tariffs that would affect about 185 countries, including the United States' largest trading partners. Examples of additional retaliatory tariffs include China 34%, the European Union 20%, Vietnam 46%, Taiwan 32%, India 26%, and Thailand 37%. All are scheduled to take effect on April 9, 2568.

Importantly, the 34% tariff on China will be added to the existing 20% ​​tariff, bringing the total tariff to 54% for China. China is Apple's most important manufacturing hub, with about 85% of its iPhones manufactured there.

Dan Ives, Wedbush analyst Speaking after the US retaliatory tariffs were announced, Apple said it makes almost all of its iPhones in China, and the key question is whether there will be tariff exemptions or concessions if these companies plan to expand production in the US, as Apple announced in February.

As trade tensions continue to escalate, Apple has begun diversifying its supply chain beyond China, increasing production in India and Vietnam. But with new tariffs covering those countries as well, there’s little hope of avoiding the impact.

Dan Ives said “The concern is the impact on commodity prices and gross margins, and what the future holds for the global supply chain,”

He added that he still believes there will be large-scale negotiations in the coming months as companies try to adjust to a new tax world, and until then, he warned that tech stocks will come under significant pressure, with the sector losing more than $1 trillion in market value overall, according to Bloomberg data analyzed by Yahoo Finance.

The closing price on April 3, 68 was as follows:

• Amazon and Meta Dropped about 9%, the same as Apple.
• Nvidia Decreased 8%
• Tesla fell 5%
• A Decreased 4%
• ecosystem decreased by more than 2%

In addition to the Magnificent Seven, semiconductor stocks also fell sharply, even though chips were exempt from Trump’s new tariffs. For example, Nvidia’s rival Broadcom lost more than $70,000 billion in market value after its stock price plunged 11%.

John Vinh, analyst at KeyBanc “The impact of the announced tariffs is broad, and we expect it to be negative across the semiconductor sector … The most noticeable impact will be on end-use demand in key markets such as smartphones/iPhones and PCs, as much of the production is still in China,” he said.

Stacy Rasgon, Managing Director and Senior Analyst at Bernstein He said the biggest risk factor for the semiconductor sector may not be direct tariffs, but the risk of demand destruction as prices rise.

“Another risk for semiconductors is that they are highly cyclical, highly global, and highly correlated with the macroeconomics and GDP. So if the economy really does go into recession, that would be very bad,”

refer : finance.yahoo.com

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