Tech stocks, particularly Apple and Amazon, suffered significant losses following President Trump's announcement of new tariffs on imports from China and other countries. Apple shares decreased by approximately 9% and Amazon by around 7%. With a substantial reliance on imports, these companies face the prospect of increased consumer prices or reduced profit margins as tariffs approach 54% on some goods. The market’s response indicates concerns about demand as companies may raise prices on popular products like iPhones and Macs, leading to a potential decline in sales.
Shares of Apple were down about 9 percent on Thursday morning, which would mark the biggest drop in about five years if it holds until the close.
The tariffs, if they aren't walked back, could mean increased prices on electronics for consumers, or slimmer margins for companies like Apple and Amazon.
Apple has typically had a gross margin of around 38%, though it has been higher, and Wall Street is concerned about lower demand if Apple increases prices.
Both companies rely heavily on imports from other countries, like China, on which Trump plans to impose a 54 percent tariff beginning April 9th.
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