Cupertino, California technology giant Apple's shares restarted their downward spiral today after press reports suggested that the Trump administration has decided to levy 104% tariffs on goods originating from China. Apple's shares have been on a downward spiral for most of this year as they've been hit by multiple negative catalysts such as delays to its AI software and more recently tariffs. The stock is down by 18.5% over the past five days alone, and the stock was up by close to 2% today as part of a broader market recovery that saw investors breathe in cautious sighs of relief following a vicious drubbing last week.
Apple Becomes Second Most Valuable Company In The World As Tariff Drubbing Weighs On Stock
Apple shares reversed the course of trading today after Fox Business reporter Edward Lawrence quoted White House Press Secretary Karoline Leavitt to share that the Trump administration is moving ahead with implementing 104% tariffs on China. Markets were dealt a blow on Friday with Apple's shares losing 7.3% after China announced retaliatory tariffs.
In response to the Chinese actions, the President had threatened yesterday that he would levy an additional 50% tariff on the country if it did not drop the additional 34% tariffs on American goods. "China issued Retaliatory Tariffs of 34%, on top of their already record setting Tariffs, Non-Monetary Tariffs, Illegal Subsidization of companies, and massive long term Currency Manipulation," wrote Trump on his social media platform.
"[I]f China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th," he added.
Now, as Leavitt starts her press conference, Fox Business' Edward Lawrence reports that 104% tariffs will go into effect on Chinese goods at midnight tomorrow. A White House source also confirmed the development to CNBC, with the publication reporting that the tariffs will be a total of 104% and go into effect at noon tomorrow. During her press conference, Leavitt confirmed the reports.
She shared:
"I just spoke to the President about this. And he believes that China wants to make a deal with the United States. He believes China has to make a deal with the United States. It was a mistake for China to retaliate. The President, when America is punched, he punches back harder. That's why there will be 104% tariffs going into effect on China tonight at midnight. But the President believes that Xi and China want to make a deal. They just don't know how to get that started. And the President also wanted me to tell all of you that if China reaches out to make a deal he'll be incredibly gracious. But he's going to do what's best for the American people.
As news hit the wires, ahead of Leavitt's statement, Apple's shares reversed their modest gains made during the day and ended in the red. At one point, the stock was down 2.91% to bring its market valuation to $2.65 trillion. This leaves it just a hairline shy of Microsoft's latest market value of $2.67 trillion as the Redmond, Washington-based software company benefits from its software business being relatively free of global supply chains. The stock continued to bleed value and slipped by 3.37% later on. However, later on, they reversed the drop and pared back the losses to 2% as investors, it appeared, bet on successful negotiations between the US and China; however, in a classic representation of today's volatility dipped by 2.6% soon afterwards.
A large chunk of Apple's revenue comes through iPhone sales in the US, and investors are factoring in the higher smartphone prices into the share price. The firm relies on its manufacturing supply chain in China for its smartphones, and reports have suggested that it is interested in expanding production in Brazil and India due to the lower tariffs on the countries levied by the Trump administration.
During her press conference, Leavitt shared that Apple also believes in America's manufacturing potential as it has committed millions of dollars in commitments. She also dismissed reports that the President would delay his tariffs.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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