It seems that Donald Trump’s trade war is backfiring. U.S. big tech companies closed last Thursday (3rd) with a cumulative loss of $772 billion in market value.
The loss is a result of the tariffs Trump imposed on Chinese products, primarily affecting Apple, Amazon, Meta, Alphabet (Google’s parent company), and Microsoft. Including Nvidia and Tesla pushes the total loss to $1 trillion.
Among the big tech firms, Apple was hit the hardest, with a market value loss of $311 billion between Wednesday (2nd) and Thursday (3rd) alone. As a result, shares of the iPhone maker dropped 9.25% on the New York Stock Exchange.
This happened after Trump raised the import tariff on Chinese products from 20% to 34%, which significantly affects Apple, as about 90% of its devices are manufactured in China, according to The New York Times.
According to Morgan Stanley, with the new tariffs, Apple‘s annual manufacturing costs in China are expected to rise by $8.5 billion. This increase may either be absorbed by the company through reduced profit margins or passed on to consumers.
If the company chooses the latter, iPhone prices are likely to rise significantly. A projection by Rosenblatt Securities revealed that the price of the iPhone 16 Pro Max in the U.S. could increase from $1,599 to around $2,300.
Photo and video: Unsplash. This content was created with the help of AI and reviewed by the editorial team.
