Global financial markets have suffered three consecutive days of losses as the trade war between the US and other countries escalates.
The technology industry, especially large US companies, have been hit hard by the tariffs imposed by President Trump. Among them, Apple was the company that took the biggest hit, with its market capitalization falling nearly 20% in what was recorded as “one of the steepest declines in the company’s history,” before recovering slightly on Tuesday (April 8).
This is largely because Apple is so dependent on a single market. Most of the company’s products, including its best-selling iPhone models, are manufactured in one country. That means the proposed 50% tariff would hit Apple harder than many other companies, with the tariff rate rising to 104% as of April 9 after the White House’s announcement.
While Apple also has manufacturing partners in Vietnam, Thailand, and India, those countries are also facing increased tariffs under Trump’s new plan.
Currently, Apple does not manufacture any products in the United States, and analysts predict that if the tariff is imposed, the company will have to bear additional costs or increase prices, which could lead to reduced profit margins or a loss of market share. According to UBS experts, the tariffs could increase the price of the iPhone 16 Pro Max model by up to $ 3,500 (90 million VND) if Apple decides to pass this cost on to consumers.
Among the "Big 7" tech companies, Nvidia led the recovery with a gain of about 4%, while other companies, such as Meta, Tesla, Amazon, Apple, Microsoft, and Alphabet, increased by 1% and 3%. However, in just the past few days, these 7 tech giants have lost $ 1.8 trillion in market value.
Apple shares have fallen nearly 20% over the past three trading sessions, wiping out nearly $640 billion in market capitalization. While the stock rose 3% in early trading Tuesday, it fell back nearly 3% after the White House’s new statement on foreign imports.
In this context, Brazilian media are speculating that Apple could move iPhone production to Brazil to avoid high tariffs. While Apple has not commented on these rumors, Brazil currently faces only a 10% tariff under the Trump administration’s new plan, which is much lower than the 26% tax in India. Apple has been assembling products in Brazil through a partnership with Foxconn since 2011, but those facilities mainly serve the local market with low-cost models.