Tech giants faced a sharp downturn after former President Donald Trump revealed fresh tariffs on imported goods. Apple led the slide, falling over 6% in after-hours trading—marking what could be its biggest drop since September 2020. The company is particularly vulnerable due to its dependence on manufacturing in China and other parts of Asia, now hit with steeper tariffs.
Nvidia saw a decline of about 4%, impacted by tariffs on goods coming from Taiwan and Mexico. Tesla also took a hit, dropping 4.5%. Other tech heavyweights like Alphabet, Amazon, and Meta slipped between 2.5% and 5%, while Microsoft dipped nearly 2%.
The new tariffs may drive up Apple’s production expenses significantly, possibly pushing device prices higher for consumers. Experts estimate these tariffs could cost Apple an extra $8.5 billion per year if no waivers are approved. The company’s ongoing strategy to reduce supply chain dependence on China may also face new hurdles.
