[Text/Observer Network Chen Sijia] US President Trump insisted on imposing so-called "reciprocal tariffs", causing huge fluctuations in financial markets. According to CNBC, Apple Inc. has become one of the largest US tech companies affected by the "trade war". Its stock price has fallen for three consecutive trading days, wiping out nearly 640 billion US dollars in market value, which is almost equivalent to Argentina's GDP in 2023.
The report said that the market is generally concerned that Trump's tariff policy may cause significant damage to Apple Inc. Although the overall performance of the US stock market was better than the previous two trading days on the 7th, Apple Inc. was hit again, with its stock price falling by 3.67%. Among the seven major US technology giants, only Apple, Microsoft, and Tesla saw a decline in their stock prices on the 7th, with Apple facing the most difficult situation.
Selling pressure has caused Apple's stock price to fall for three consecutive trading days, with a cumulative decline of 19%, wiping out 638 billion US dollars in market value.
Analysts said that Apple is highly dependent on the Chinese market, making it one of the American companies most affected by Trump's "trade war". Although Apple has established production lines in India, Vietnam, and Thailand, these countries also face Trump's high tariffs. After the new tariffs take effect, Apple may raise product prices to cover the additional tariff costs.
UBS analysts estimate that the price of Apple's highest-end iPhone may increase by about 350 US dollars from the current 1199 US dollars, an increase of approximately 30%. Barclays Bank analyst Tim Long predicted that if Apple does not raise prices, the company's earnings per share may decrease by 15%. Apple may also reorganize its supply chain, seeking imports from other countries with lower tariffs into the United States.
CNBC reported that Apple refused to comment on the issue of tariffs.
On January 20th local time, Apple CEO Cook attended Trump's inauguration ceremony Visual China
On April 2nd local time, US President Trump signed an executive order on so-called "reciprocal tariffs" at the White House, announcing a 10% "minimum benchmark tariff" for all trading partners, while imposing higher tariffs on more than ten other countries and regions including China based on the 10% level. The "reciprocal tariff" rate imposed on China is 34%.
The "minimum benchmark tariff" came into effect on April 5th local time, while the higher tariffs will take effect on the 9th. Previously, the US had generally levied a 20% tariff on Chinese goods. Starting on the 9th, the rate will be added to 34%, bringing the total tariff rate on Chinese goods to 54%.
"Reciprocal tariffs" immediately triggered massive fluctuations in financial markets, with US stocks collapsing in the last two trading days of the previous week. On the 7th, the first day of the new week of the US stock market, US stocks continued to decline after opening, with all three major indices falling by over 3% within ten minutes.
However, when the market was generally expecting further declines, a sudden rumor spread online stating that "Trump is considering suspending tariffs." This quickly boosted stock prices. On the morning of the 7th, several US media outlets reported that Kevin Hassett, director of the White House National Economic Council, said that Trump was considering suspending tariffs for some countries for 90 days.
American Cable News Network (CNN) reported that this news immediately turned the US stocks from falling to rising, with the S&P 500 index rising by 8.5% within 30 minutes.
However, US media soon verified that Hassett only stated during an interview with Fox News that "the president will make his decision," without clearly indicating that "Trump is considering suspending tariffs for some countries for 90 days." White House press secretary Caroline Lettow also denied the relevant reports, calling these claims "fake news," causing the US stocks to fall again.
After a roller-coaster day, the Dow Jones Industrial Average fell by 0.91% on the 7th, the S&P 500 index fell by 0.23%, and the Nasdaq index rose by 0.1%. CNBC pointed out that the S&P 500 index has fallen by more than 10% cumulatively in the past three trading days, which is the worst performance since the COVID-19 pandemic in 2020.
Despite the doubts and panic triggered by the tariff policy in the US market, Trump remains determined. On the afternoon of the 7th local time, Trump told reporters at the White House that he does not plan to suspend the tariff policy, "We are not considering this. Many countries are negotiating with us. These agreements will be fair, and in some cases, they will pay high tariffs."
Investors are concerned that Trump's tariff policies may lead to rising global supply chain prices, reduced demand, and even potentially cause a global economic recession. James Dimon, CEO of JPMorgan Chase, said that these measures may bring lasting negative impacts. Bill Ackman, a Trump supporter and hedge fund manager in the US, also began to question Trump's tariff policies, saying that this move could lead to an "economic nuclear winter."
Currently, Goldman Sachs has raised the probability of a US economic recession to 45%. Morgan Stanley predicts the probability to be as high as 60%.
This article is an exclusive contribution of Observer Network and cannot be reprinted without permission.
Original article: https://www.toutiao.com/article/7490756930189705780/
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