Apple stock falls sharply in response to Trump tariffs, potential impact on iPhones supply chain

From Nasdaq: 2025-04-07 12:45:00

The Trump administration’s tariff announcements on April 2 caused a sharp stock market sell-off impacting major tech companies like Apple, Microsoft, Amazon, Google, Facebook, Nvidia, and Tesla. Apple suffered the sharpest decline in response to the tariffs, with potential impacts on its beloved iOS products. The announced tariff plan includes a 10% unilateral tariff on U.S. imports and reciprocal tariffs on imports from other countries, potentially leading to increased prices for consumers. Apple’s supply chain being outside the U.S. could result in a 43% cost increase for iPhones due to tariffs.

Apple’s decline isn’t just due to tariffs; challenges with AI integration and a high P/E ratio have also contributed. Multibillionaire Warren Buffett has been selling down his stake in Apple amidst these challenges. While Apple remains a prominent company, it may be too soon to invest due to these factors. The stock’s future growth could be impacted by tariffs, and the company’s high valuation may not be justified. It’s suggested to reevaluate Apple’s stock post-tariff impact and wait for a more reasonable P/E ratio before considering an investment.

Investors are advised to hold off on investing in Apple for now due to uncertainties surrounding tariffs, AI integration challenges, and the company’s high valuation. The Motley Fool’s Stock Advisor team has identified other stocks with potential for significant returns in the future, excluding Apple from their top picks. Nvidia, for example, has seen substantial growth since its recommendation in 2005. Consider joining Stock Advisor for more insights on top-performing stocks.



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