Apple's (AAPL, Financial) stock closed down nearly 4%, bringing its market cap below $3 trillion to $2.92 trillion. This decline follows the initial boost from a temporary tariff exemption on electronic products announced by former President Trump. However, after Trump clarified the exemption and initiated an investigation into semiconductor exports, Apple's stock faced renewed tariff pressures.
The volatility in Apple's market value began with Trump's tariff announcements. On April 2, he declared global reciprocal tariffs effective from April 9. A temporary suspension of this plan was announced on April 9, which initially drove Apple's stock up. However, the exemption was later deemed temporary, and Apple’s stock experienced significant fluctuations, even dropping to its lowest in nearly a year at one point.
Despite the recent dip, Apple remains the world's most valuable company, slightly ahead of Microsoft with a market cap of $2.76 trillion. The pressure on Apple increased after NVIDIA revealed that exports of its H20 chip to certain countries require licenses. This comes amid conflicting reports about U.S. restrictions on NVIDIA's chip exports to China.
Analysts express concern that ongoing tariffs and export restrictions will make it increasingly challenging for Apple to navigate the U.S.-China trade tensions.
