Impact on Apple. Apple’s shares keep falling. On Tuesday, they closed 5% lower, adding to a cumulative decline of 23% since Trump announced the first tariffs a few days ago. As a result, the company’s market cap has fallen to $2.59 trillion.
This decline has caused Apple to lose its title as the worlds’ most valuable public company, with Microsoft reclaiming the top position. Microsoft closed with a smaller decline of 0.92% but a slightly higher market cap of $2.63 trillion.
A rivalry that remains strong. In recent years, Apple and Microsoft have alternated as market leaders multiple times. However, since mid-2024, Apple has solidified its position at the top, likely due to its impressive revenues. Meanwhile, Microsoft has raised doubts among investors. Its investment in AI has led to increased expenses, and it remains uncertain when a return on that investment will materialize.
Multiple victims. The downdraft hasn’t been limited to Apple. Other major tech companies have also seen their stocks close lower than the previous days. Nvidia, the third-largest company globally, fell by 1.37%. Amazon dropped by 2.62%, and Alphabet (Google) lost 1.78%. Dutch semiconductor giant ASML was also affected, with a loss of 3.32%.
Context. This tense climate began on April 2 when the Trump administration decided to reintroduce trade pressures on China, imposing a 34% tariff on certain products. This measure was presented as a “reciprocal” action, but it didn’t sit well in Beijing. China’s Commerce Ministry responded with a warning, saying, “If the U.S. insists on its own way, China will fight to the end.”
There’s One Clear Winner From the 25% Car Tariffs: BYD, the Epitome of Everything China Has to Gain
Then, Trump issued an ultimatum: If China didn’t back down by Tuesday, he would impose a new 50% tariff. Beijing remained unyielding, and Washington also stood firm. In fact, recent reports indicated that the Chinese government was considering banning the distribution of American films.
Conflict escalation. Markets have reacted strongly to the conflict between the U.S. and China. The new 50% tariff took effect on Wednesday at midnight. When combined with the existing 20% tariffs and the recently announced 34% tariffs, net total tariffs reach a 104% on exported goods to the U.S.
Images | Anne Nygård | Sam Torres
The post Trump’s 104% Tariff on China Officially Comes Into Effect. Apple Is No Longer the World’s Most Valuable Company appeared first on Xataka On.
