Apple Stock Fluctuates Amid Trump Tariff Uncertainty

The stock price of Apple Inc. has experienced significant volatility as a result of the recent tariffs announced by former President Donald Trump. Since Trump implemented tariffs on a wide range of goods from various countries, Apple shareholders have witnessed dramatic fluctuations in the company's stock value.

During the period from Thursday of last week to Tuesday, Apple's shares fell by as much as 8%, only to regain some ground shortly thereafter. Following an announcement that the tariffs would be temporarily paused, the stock rose briefly, despite the fact that new tariffs on Chinese imports were set to increase to 125%. This is particularly concerning for Apple, as the majority of its iPhone production occurs in China.

On Thursday, financial analysts on Wall Street recognized the challenges posed by the current tariff situation, leading to a further decline in Apple's stock by 4.24% during regular trading hours, followed by an additional drop of nearly 1% in after-hours trading. The company's market capitalization now stands at $2.8 trillion, with the stock value having previously allowed Microsoft to momentarily surpass Apple in market worth. As of now, the two companies are nearly equal in valuation.

Trump has commented that he believes the production of iPhones in China is "unsustainable" for Apple. However, there have been no indications that the company intends to move its production to the United States. There are discussions about establishing server facilities in Texas for Apple Intelligence, similar to the production of the high-end Mac Pro, but the main assembly of iPhones may remain in China. An analysis by Bank of America indicates that manufacturing an iPhone in the U.S. could be up to 90% more expensive than producing it in China, with labor costs alone potentially increasing the price by 25%.

The U.S. government maintains that domestic production of the iPhone is feasible. However, analysts from Bank of America express skepticism about Apple's likelihood to establish U.S. manufacturing facilities unless tariffs remain in place. Even with factories in the U.S., many components would still need to be imported from China, subjecting them to tariffs as well.

Currently, 185 countries are exempt from the tariffs for a duration of 90 days while the Trump administration seeks to negotiate new terms. Prior to the recent announcements, Apple's stock had already declined by 14%, with the total market value loss reaching approximately $480 billion.