Tech giant Apple saw its shares drop by more than 6% in late trading on 02 April, indicating a broader decline in the technology sector after US President Donald Trump announced new tariffs on imported goods.
The executive order, signed by Trump, imposes tariffs ranging from 10% to 49% on all imports, effective from 5 April 2025.
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Additionally, higher duties have been set for specific countries, with imports from China facing a 34% tariff, European nations subject to a 20% tariff, and Japanese imports being hit with a 24% duty.
According to Trump, these “reciprocal” tariff rates are based on what tariffs these countries impose on US exports.
Apple’s majority revenue comes from devices primarily manufactured in China and other Asian nations.
If Apple’s post-market losses persist into regular trading on 3 April, it would mark the steepest single-day decline for the stock since September 2020, according to CNBC.
Other technology companies also saw declines following the announcement.
Shares of chipmaker Nvidia, which produces chips in Taiwan and assembles AI systems in Mexico and other locations, fell by approximately 4%.
The impact was widespread across major technology companies, with Alphabet, Amazon, and Meta seeing declines of between 2.5% and 5%, respectively, while Microsoft fell nearly 2%.
Trump characterised the tariffs as a measure “to strengthen the international economic position of the US.
“We will supercharge our domestic industrial base, we will pry open foreign markets and break down foreign trade barriers,” the news publication reported Trump as saying.
“Ultimately, more production at home will mean stronger competition and lower prices for consumers.”
Despite the tariffs, Trump praised Apple, Meta, and Nvidia for their investment in the US economy.
Trump said: “Apple is going to spend $500bn, they never spent money like that here. They’re going to build their plants here.”
Apple had previously announced in February what it described as its “largest-ever spend commitment”, pledging over $500bn in investment in the US over the next four years.
This plan includes the establishment of an advanced manufacturing facility in Houston to produce servers supporting Apple Intelligence, as well as the expansion of its Advanced Manufacturing Fund.
The company also plans to create a training academy in Michigan and increase research and development investments within the US.
