Apple Shares Drop 7%
World
After U.S. President Donald Trump imposed new tariffs on China and other trading partners, Apple’s shares fell by 7% on the Frankfurt Stock Exchange. This decline signals significant economic consequences for the company, given its large manufacturing base in China.
The tariffs announced by Trump could add extra costs to Apple products. According to an analysis by Citi, if Apple does not receive an exemption from these tariffs and is forced to pay the full 54% duties, it could have an approximately 9% negative impact on the company's gross profit margin.
Apple is well known for manufacturing most of its products in China, with its supply chain deeply integrated into the country for years.
According to analysts, as the U.S.-China trade war escalates, challenges for Apple and other major tech companies will continue to grow. Companies will need to develop new strategies to reduce production costs and mitigate the impact of tariffs.
Apple is well known for manufacturing most of its products in China, with its supply chain deeply integrated into the country for years.
According to analysts, as the U.S.-China trade war escalates, challenges for Apple and other major tech companies will continue to grow. Companies will need to develop new strategies to reduce production costs and mitigate the impact of tariffs.
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