Apple’s $640 billion meltdown: Tariff fears trigger deep market slide

Apple's stock continues to nosedive, extending a dramatic three-day decline that has erased nearly $640 billion from its market value, amid mounting fears over US tariffs that could severely impact the tech giant’s global operations.

Shares of Apple fell another 3.7% on April 7, bringing its total loss since April 3 to a staggering 19% — the steepest among the mega-cap tech stocks, Caliber.Az reports, citing US media.

While broader markets showed signs of recovery, Apple, along with Microsoft and Tesla, closed in the red, marking a tough day for the tech sector’s biggest names.

Apple’s vulnerability lies in its heavy dependence on China, where many of its products are manufactured. The country is now facing US tariffs of up to 54% under President Donald Trump’s aggressive trade plan. While Apple has moved some production to countries like India, Vietnam, and Thailand, those regions are also caught in the crossfire of Trump’s sweeping tariff strategy.

UBS analysts warned that Apple may be forced to raise the price of its highest-end iPhone by approximately $350 — or 30% — from its current $1,199 price tag, if it chooses to pass on the increased costs to consumers. Otherwise, absorbing the tariffs could significantly dent the company’s bottom line.

Barclays analyst Tim Long echoed that concern, noting Apple could face up to a 15% drop in earnings per share if it doesn’t adjust pricing.

Further complicating matters, China has announced a 34% tariff on US imports effective April 10, while Trump has threatened to slap an additional 50% tariff on Chinese goods if those levies are not reversed by April 8. This looming tariff war puts Apple in a precarious position, given its unique exposure to both economies.

Reports suggest Apple is already shifting more iPhone production to India in an effort to offset some of the impact from Chinese tariffs.

With Apple’s market cap shedding hundreds of billions in just days, investors are bracing for more turbulence ahead, especially if the US-China trade tensions escalate any further.

By Tamilla Hasanova