The latest tariff announcements by the United States have sent ripples through the market, impacting Apple shares significantly. President Donald Trump's decision to impose a 25% tariff on imports from Mexico and Canada, along with a 10% tariff on Chinese goods, has raised concerns about potential retaliatory actions and further strain on international trade relations. The aggressive nature of these tariffs, particularly those on Canada and Mexico, has caught investors off guard, leading to fears of disruptions in global trade and increased inflation. While Bank of America suggests that Apple's profitability might not be severely impacted due to the company's strategic measures, the overall market sentiment remains cautious amid these escalating trade tensions.
The Direxion Daily AAPL Bull 1.5X Shares (AAPU) ETF has reacted sharply to these developments, dropping 6.82% to $30.62 as of 11:00 AM on Monday, February 3.