Apple shares are experiencing a decline as the market reacts to the latest tariff announcements by the United States. President Donald Trump announced a 25% tariff on imports from Mexico and Canada, alongside a 10% tariff on Chinese goods, effective immediately. This move has sparked concerns about potential retaliatory measures from these countries, which could further strain international trade relations. The announcement was more aggressive than anticipated, with the tariffs on Canada and Mexico taking effect sooner than expected, and the threat of additional tariffs looming. The market is bracing for potential disruptions in global trade and increased inflation, which could pose challenges for equities.
Despite the broad market sell-off, Bank of America has suggested that the impact of these tariffs on Apple's profitability is likely to be limited. The firm believes that Apple's earnings will not be significantly affected, as the company has strategies in place to manage the potential impact. However, the overall market sentiment remains cautious, with investors wary of the broader implications of the trade tensions.
Apple's stock is currently trading at $228.84, down 3.03% from its previous close of $236.