Apple’s shares have fallen by 23% in recent days amid concerns about the effect of United States tariffs on its production in China, leaving Microsoft as the world’s most valuable company.
As many Apple products are manufactured in China, the company stands to be heavily impacted by U.S. President Donald Trump’s newly imposed tariffs. Trump has said he will impose a 104% tariff on goods from China this week if China does not end its 34% reciprocal tariff.
White House Press Secretary Karoline Leavitt has said Trump believes iPhones can be made in the U.S. “He believes we have the labour, we have the workforce, we have the resources to do it.”
Secretary of Commerce Howard Lutnick has also claimed this is the administration’s goal. “The army of millions and millions of human beings screwing in little screws to make iPhones — that kind of thing is going to come to America.”
Apple CEO Tim Cook has previously said building its products in the United States would not be possible, as the U.S. lacks sufficient tooling engineers.
Tariffs on China could lead to a price increase of US$350 on the iPhone 16 Pro Max in the U.S., UBS estimated this week. UBS analysts projected Apple products made in China could see price increases of almost 30%.
The U.S. has also placed tariffs on Apple’s secondary manufacturing nations, like India, Vietnam, and Thailand. The price of the iPhone 16 Pro could rise by US$120 if the product is made in India, UBS said.
Apple had lost more than US$638 billion in market capitalisation from Thursday to Monday, local time. The NASDAQ has also fallen by 13% over the past four trading days.
While Microsoft’s market capitalisation has similarly plummeted in recent days as the NASDAQ has declined, it now stands at US$2.64 billion, above Apple’s $2.59 billion. Both companies’ market capitalisations were above $3 trillion before the tariffs were introduced.
Apple’s (NASDAQ: AAPL) share price closed at US$172.42, down from its previous close at $181.46. Its share price closed at $223.89 on 2 April, the day before U.S. tariffs entered into effect.
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