Apple Inc. has seen a significant decline in its market value, losing approximately $700 billion, as investors react to newly announced U.S. tariffs that could impact the company’s global supply chain.
Following the rollout of additional tariffs by former President Donald Trump—referred to by some as “liberation day” tariffs—Apple’s stock dropped 19% over three trading sessions, its steepest decline in a comparable time period since 2001. The company’s market capitalization fell from roughly $3.3 trillion to $2.6 trillion, with shares declining from $223 to $175 as of Tuesday afternoon.
The tariffs are part of a broader trade policy targeting major U.S. trading partners, including China and Taiwan. Analysts have expressed concern over Apple’s exposure to China, where the majority of its flagship iPhone devices are manufactured. Wedbush Securities noted that around 90% of iPhones are produced and assembled in China, making Apple particularly vulnerable to new trade barriers.
During the previous Trump administration, Apple was able to secure exemptions from some tariffs. It remains uncertain whether similar relief will be granted this time. Analysts at Wedbush referred to the potential impact of the tariffs on Apple as severe, especially given the company’s ongoing reliance on Chinese manufacturing.
Estimates suggest that relocating even a portion of Apple’s supply chain to the United States would require a multiyear effort and significant investment. According to analysts, shifting just 10% of operations could cost $30 billion and take approximately three years.
If the company chooses to pass tariff-related costs on to consumers, analysts project a significant increase in product pricing. According to Rosenblatt Securities, the base model iPhone 16 could rise in price from $799 to $1,142, while the iPhone 16 Pro Max with 1TB of storage could increase from $1,599 to around $2,300.
The tariffs currently stand at 32% for Taiwan and 54% for China. President Trump indicated this week that an additional 50% tariff on China may be implemented in response to retaliatory measures, potentially bringing the total tariff burden on Chinese imports to 104%.
Apple has made efforts to diversify its supply chain in recent years. The company now produces approximately 1 in 7 iPhones in India and has expanded manufacturing in Vietnam, including a majority of its wearable devices. However, imports from those countries also face new tariffs—26% for India and 46% for Vietnam.
Apple has not yet issued a public statement in response to the latest developments.
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