Apple Rebounds in Premarket as Trump’s Super-Sized China Tariffs Take Effect

? Apple Rebounds in Premarket as Trump’s Super-Sized China Tariffs Take Effect

Apple Inc. (AAPL) saw its stock rise over 1% in premarket trading on Wednesday, rebounding after a sharp sell-off triggered by President Trump’s sweeping new tariffs on Chinese imports.

? Tariff Timeline Recap:

• On April 2, during a "Liberation Day" press event, President Trump:

  • Announced a 34% tariff on Chinese imports.

  • Added this to the existing 20% tax, creating a total levy of 54%.

• On Monday, via Truth Social:

  • Trump warned of an additional 50% tariff effective April 9,
    unless China withdrew its own 34% retaliatory tax by Tuesday.

• Resulting Tariff Total: 104% on Chinese imports now in effect.

? Apple Stock Performance:

• Tuesday Opening Price: $186.73

• Intraday High: $190.34

• Closing Price: ▼ 4.98%, amid renewed tariff fears and broader market decline

• Wednesday Premarket: ▲ 1%+, signaling early investor optimism

? Why It Matters:

• Apple builds most of its iPhones in China, making it highly sensitive to U.S.-China trade tensions.

• Trump has also implemented a 26% tariff on Indian imports, complicating Apple's shift of manufacturing to India.

? Analyst Commentary:

• William Power, Baird Equity Research:

  • Predicts Apple’s gross margins could drop:

    • From 46.8% to 44.4% in 2025

    • Down to 41.6% by 2026, under previous tariff levels

  • The new 104% total tariff may further pressure profitability.

❓ What’s Next for Apple?

Apple previously won tariff exemptions during Trump’s first term, but there’s no assurance it will secure relief this time.
Investors and analysts remain watchful as the company navigates supply chain disruptions, profit margin challenges, and mounting geopolitical tension.