Apple stocks slid more than 6% in late trading Wednesday, following President Trump’s announcement of sweeping reciprocal tariffs between 10% and 49% on imports from U.S. trade partners.
The reciprocal tariff rate for China, where the majority of Apple’s manufacturing takes place, is 34%. Analysts predict this rate may increase the cost of iPhones by 40% as the U.S. and China move closer towards a trade war. The trade policy will likely also increase prices across several imported goods, including cars, coffee and electronics.
“My fellow Americans, this is Liberation Day,” Trump said on Wednesday from the White House Rose Garden, claiming retaliatory tariffs were a path away from the country’s dependence on foreign goods.
“April 2, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed and the day that we began to make America wealthy again,” he said.
The new measures include a minimum baseline tariff of 10% on all trading partners and an increase on tariffs already placed on countries like China, Taiwan and the European Union.
Press secretary Karoline Leavitt previously said the tariffs would take effect immediately, though a fact sheet from the White House website gave later dates.
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