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U.S. President Donald Trump announced a new tariff policy on April 2, imposing steep import duties ranging from 10% to 49%. Following the announcement, tech stocks tumbled, with Apple leading the decline, plunging more than 6%—the steepest drop among major technology firms. Nvidia fell approximately 4%, while Tesla slipped 4.5%.
Among other major tech companies, Alphabet, Amazon, and Meta fell ranging from 2.5% to 5%, while Microsoft declined nearly 2%.
Apple relies heavily on China and several other Asian countries for production, with many key products manufactured by Foxconn. When contacted by TechNews for comment on the new tariffs, Foxconn did not provide a response.
TechNews reports that since the new tariff policy primarily imposes high duties on goods, including certain components, the market may need to wait until suppliers formulate corresponding production plans and coordinate with Apple before understanding the company’s response.
Notably, Mexico is excluded from the reciprocal tariff measures, a factor that could benefit Foxconn, which has a significant manufacturing presence in the country.
According to TechNews, Apple’s major production locations are as follows:
The newly announced reciprocal tariffs impose the following rates on key regions and countries:
The primary goal of Trump’s reciprocal tariffs is to encourage companies to shift manufacturing back to the United States. Trump reiterated that companies can avoid these tariffs entirely if they produce their products domestically.
Regarding the potential impact of the new tariffs on the consumer electronics industry, TrendForce’s initial assessment suggests that, in the short term, most consumer and IT products could face rising end-market prices and a decline in shipments. However, the implications for products covered under the Information Technology Agreement (ITA) remain unclear and require further clarification.
On the other hand, TrendForce notes that Mexico appears to have an advantage due to the protection offered by the USMCA trade agreement. As a result, manufacturers with production capacity in Mexico could be in a more favorable position.
— Rapid Response 47 (@RapidResponse47) April 2, 2025
(Photo credit: Apple)
