US President Donald Trump’s new tariff announcements on China have caused a historic drop in Apple’s stock value. The total loss in value over the last three trading days has reached approximately $640 billion.
Apple’s market value has fallen by $640 billion
Trump’s tax threat of up to 54 percent has directly affected companies with intense economic relations with China. Apple is one of the companies most affected by this crisis because it carries out most of its production in China.
Apple shares lost another 3.7 percent of their value on the last trading day alone. The company’s shares were trading at $223.89 a few days ago. However, after the sharp sales, the stock value fell to $181.46. This 19 percent drop has wiped out approximately $638 billion from Apple’s market value.
Apple’s iPhone, MacBook, iPad and other flagship products are largely assembled in China. Although the company has been trying to move its production line to countries such as India, Vietnam and Brazil in recent years, these countries are not yet able to meet China’s scale and manufacturing infrastructure.
According to Trump’s statement, customs duties on products imported from China to the US have already reached 54 percent. In response, the Chinese administration announced that it will impose a 34 percent tax on products coming from the US.
Analysts say that Apple will have to directly reflect this increase in production costs on consumer prices. The price increase for the company’s new iPhone models could be between 30 and 45 percent.
It is said that this situation could seriously reduce consumer demand, especially in the US and European markets. So what do you think about this? You can share your views with us in the comments section below.
