Apple’s stock dropped by 7% in Frankfurt after U.S. President Donald Trump revealed major new tariffs on several trading partners, including India and China—where Apple manufactures many of its products.
Apple is expected to take a hit to its profit margins due to new trade tariffs imposed by US President Donald Trump on China and India, according to a note by Citi. The tech giant relies heavily on China for manufacturing, with over 90% of its production based there. If China doesn’t receive an exemption from these steep tariffs, Apple’s total gross margin could drop by around 9%. India, another key manufacturing location for Apple, was also targeted, though its impact is expected to be smaller—just about a 0.5% margin hit.
Trump’s latest round of tariffs adds roughly 34% in new duties on Chinese goods, raising total tariffs on Chinese imports to 54%. Taiwan also faced a 32% tariff, affecting companies like Apple that source components from the region. These moves are expected to hurt firms with significant supply chain dependence on Asia, particularly Apple, which assembles most of its devices in China and has growing operations in India and Taiwan.
[…] many large US corporations, especially those reliant on global supply chains. Among the worst-hit:Apple Inc. fell by more than 7%, with much of its manufacturing based in China.Retail giants like Five […]