Trump tariffs attack key parts of the Apple supply chain, Apple stock drops 7% in after-hours trading

The full extent of the U.S. government’s impeding tariffs were revealed by the Trump administration today in a press conference. The hefty tariffs threaten economic trade on a massive scale with implications on almost all big US companies, including Apple. The Apple supply chain relies on manufacturing and assembly of its devices in countries like China, India, Malaysia and Vietnam. All of these regions are now facing huge tariffs, which ultimately increases the cost of production and undermines Apple’s margins and potential profitability. Trump announced a base rate of 10 percent tariffs on all imports to the United States, a move that will have significant economic impact on its own. The 10% levy goes into effect on Saturday, April 5. However, the story only gets bleaker as the Trump administration is also instating what it calls “reciprocal tariffs” on select nations where the prices of US exports are said to be inflated by international government measures. These higher rates ar ... Read full article.