Behind the Money
Apple navigates Trump’s tariffs
Apr 9, 2025
Michael Acton, the Financial Times' San Francisco correspondent, discusses the impact of Trump's tariffs on Apple, which lost over $300bn in market value. He highlights Apple’s vulnerability due to its reliance on international supply chains, especially in China. The conversation delves into Tim Cook’s efforts to navigate these challenges and diversify manufacturing. Acton also addresses the potential regulatory hurdles Apple faces in the transatlantic market and the broader implications for the tech sector amidst rising tariffs and competitive pressures.
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Quick takeaways
- Apple's market value plummeted by over $300 billion due to Trump's tariffs, highlighting its vulnerability amid costly supply chain dependencies.
- To navigate the tariff crisis, Apple is considering price increases or absorbing costs, while attempting to diversify its manufacturing locations.
Deep dives
Impact of Tariffs on Apple
Apple is currently facing significant challenges due to the newly announced tariffs by the U.S. government. The company's market valuation was negatively affected, with a staggering $300 billion loss following the tariff announcement. This situation is further complicated by Apple's heavy reliance on a complex supply chain based in China and Southeast Asia, which means that the tariffs directly impact its profit margins. The anticipated increase in costs, potentially exceeding $33 billion annually, poses a severe threat to Apple's financial health and long-term strategy.
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