Trump announced new tariffs of more than 30 percent on both China and Taiwan on Wednesday as part of an expansive lineup of tariffs targeting imports from dozens of countries.
The 34 percent levies on China were on top of the 20 percent tariffs Trump previously announced against the country, bringing total tariffs to more than 50 percent against the manufacturing giant.
Meanwhile, Taiwan is facing a 32 percent import tax, while goods from the European Union (EU) will encounter a 20 percent tariff upon entry into the U.S.
Tech companies that depend extensively on manufacturing and supply chains that run through China and Taiwan are expected to be hit hard by the country-specific tariffs that go into effect next week.
“Today has actually been quite devastating. I think there’s a lot of head scratching happening in the tech sector,” said Dave Warrick, executive vice president of Overhaul, a software-based supply chain solutions company.
Major tech stocks sank Wednesday following Trump’s announcement, which included plans to place a 10 percent baseline tariff on all imports, alongside higher tariffs on dozens of countries considered the “worst offenders” when it comes to trade barriers.
Apple’s stock took the hardest hit, tumbling more than 9 percent on Thursday and wiping out more than $300 billion in value to mark its worst day since March 2020.
The iPhone maker is expected to be particularly affected by the tariffs given that most of its products are produced in China.
About 80 percent of Apple products are made in China, including 90 percent of iPhones, 80 percent of iPads and 55 percent of Mac computers, CNBC reported.
“While Apple has diversified its supply chain to other parts of the world including Vietnam, India, and the US…the hearts and lungs of the Apple supply chain are cemented in Asia,” Wedbush Securities analysts wrote in a separate note Thursday.
Vietnam is set to face one of the highest tariffs under Trump’s plan at 46 percent. The administration also plans to levy a 26 percent import tax on goods from India.
Read more in a full report at TheHill.com tomorrow.
