Tim Cook didn’t save Apple: tariffs hit prices and stocks

Apple’s attempts to avoid the effects of American tariff policies have failed, with the company’s stock plunging nearly 8% after Donald Trump’s administration unveiled a new duty plan. The restrictions affected almost all of the key countries where Apple places its production.

The most painful hit is China, Apple’s largest manufacturing center. Products assembled there are now subject to a 54% tax. Taiwan, where Apple’s proprietary Silicon chips are made, is also on the list, although semiconductors are temporarily exempt. The relief may not last long, however.

Taiwan is also on the list, though temporarily the semiconductors are exempt.

Apple’s other alternative manufacturing sites – India, Vietnam and Thailand – were also hit by the new rates. Vietnam is plus 46% and India is plus 26%. All of the duties go into effect as early as April 9, and that means a sharp increase in the costs of manufacturing outside the U.S.

If the company decides to make up for the losses at the expense of consumers, the next iPhone model could get seriously expensive. That’s especially true given the iPhone 16’s sluggish launch, after which Apple’s price dropped just 1%. Now the market has reacted much more harshly, down 7.9% in a matter of hours.

This drop indicates that Tim Cook has failed to get Apple exemptions to the new trade rules, as he did during Trump’s first term. Meanwhile, investors are growing louder about the loss of confidence.

Samsung, on the other hand, may be on the upside – the company moved all of its manufacturing capacity out of China in advance and is now staying out of the new tariff wave.