Is Apple’s $300 Billion Sell-Off a Sign of a Tariff-Induced Tech Downturn? What Investors Need To Know
Written by
Adam Palasciano
Edited by
Jenna Klaverweiden
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You’ve probably heard all the buzz about tariffs by now. On April 2, otherwise known as “Liberation Day,” President Donald Trump announced a massive tariff plan that imposed a 10% universal tariff, with some countries facing much higher tariffs.
All the news about tariffs over the past several weeks has shaken the world economy and resulted in massive stock market losses. CNN reported that as of April 6, the S&P 500 had dropped 15% since Inauguration Day, and two-thirds of that drop took place after Trump’s announcement.
Fast-forward to April 9, and Trump paused reciprocal tariffs for 90 days, except on China. The stock market rallied after Trump announced the pause.
With all this economic chaos, the stock market has been in a state of constant flux over the past two weeks, and massive tech companies have been no exception to major losses.
One stock in particular that’s seen a massive $300 billion sell-off since then is Apple (AAPL). Here’s how Apple stock has responded to the tariff news and what investors need to know.
Apple’s Tariff-Induced Drop
The day after Trump’s tariff announcement, Apple was one of the tech stocks that suffered a severe market sell-off.
Yahoo Finance reported that shares of Apple saw their worst day since March 2020 after its stock plunged more than 9%, effectively erasing more than $310 billion from its market cap.
Apple’s overseas production facilities are located in countries heavily impacted by Trump’s sweeping tariff policy, which likely contributed to the drop. China, in particular, is an important country for Apple in terms of production facilities. If high tariffs remain in place for China, consumers may see the price of Apple products rise.
Economic Uncertainty May Lie Ahead for the Tech Industry
It remains to be seen whether tariffs are going to lead to a major tech market downturn in the weeks, months and years ahead, depending on how long they remain in place. But as Morningstar noted, many tech companies’ supply chains are heavily concentrated in Asia, so tariffs could affect the sector as a whole.
However, there may be some reprieve for tech. As PBS reported, electronics, including smartphones and laptops, have been excluded from reciprocal tariffs, though U.S. Commerce Secretary Howard Lutnick said that is just temporary.
Considering the current state of the economy, it’s important to evaluate your risk tolerance and take extreme caution when choosing investments moving forward.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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