Shares of Apple (AAPL) experienced a drop of over 7% before the market opened, continuing to lead the decline in technology stocks that resulted from Trump’s unexpectedly high tariffs.
Apple’s international production sites are especially vulnerable due to the company’s operations in China, Vietnam, and India. These nations will encounter tariffs of 34%, 46%, and 26%, respectively, once additional duties are considered.
“Apple manufactures nearly all its iPhones in China, and the concern lies in what exceptions or exemptions may arise from this tariff policy, particularly if these companies expand their operations in the US, as Apple announced earlier in February,” remarked Wedbush analyst Dan Ives in a note to clients on Wednesday.
In other technology sectors, semiconductor stocks are likely to feel substantial pressure, with Nvidia (NVDA) and others heavily reliant on supply chains from China and Taiwan.
“Concerns will focus on pricing and margin effects, as well as implications for the global supply chain moving forward,” Ives stated.
At the moment, the analyst maintains that significant negotiations are expected in the following months as companies strive to adapt to “this new reality of tariffs.” In the interim, he cautioned, “technology stocks will undoubtedly be under considerable pressure.”
