Apple Sinks on News of Plans for Additional China Tariffs – TheStreet.com

Apple Sinks on News of Plans for Additional China Tariffs – TheStreet.com

apple-sinks-on-news-of-plans-for-additional-china-tariffs-–-thestreet.com

Apple (AAPL) shares fell sharply Thursday afternoon after President Trump announced he would be imposing an additional 10% tariff on $300 billion of Chinese goods starting Sept. 1.

Right after Trump tweeted the news at 1:26 p.m. ET, Apple shares fell almost 4% from $216.89 to $208.37 before recovering some of their losses. The broader markets staged a sharp reversal following the news. For the day, Apple shares were down roughly 1.4%.

Apple gets a significant portion of its overall revenues from China and also assembles most of its iPhones and many of its other products there, meaning expanded tariffs on Chinese imports would increase its costs. In July, Apple had filed a request with the Office of the U.S. Trade Representative asking for some of the parts for its Mac Pro laptops to be exempted from potential tariffs. But President Trump tweeted on July 26 that the request would be denied.

“Apple will not be given Tariff wavers, or relief, for Mac Pro parts that are made in China. Make them in the USA, no Tariffs!” Trump wrote. Apple recently moved the manufacturing of its Mac Pro from the U.S. to China. 

Apple had reported strong earnings earlier this week, including a recovery in its China sales, that saw its shares rally and its market cap briefly pierce the trillion-dollar mark again. Its current market cap stands at roughly $950 billion.

Many large U.s. semiconductor firms also get a significant percentage of their business from Chinese firms, and their shares were falling as well on Thursday, with the Philadelphia Semiconductor Index falling roughly 4% from its highs for the day.  

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Apple is a holding in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AAPL? Learn more now.

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