Apple Faces Stock Decline Amid Rising Tariffs from Trump Administration

Apple Inc AAPL is grappling with significant challenges as President Donald Trump‘s unexpected increase in tariffs creates turmoil in the tech industry.

The stock dropped approximately 9.5% in early market trading on Thursday, contributing to a dismal month that has already seen shares fall more than 13%. Should this trend continue, the stock might approach a Death Cross, a typical bearish indicator.

As new tariffs target China, Vietnam, and India—key components of Apple’s supply chain—investors are left to consider the potential depth of this damage.

Assessing the Financial Impact of New Tariffs

Wedbush analyst Daniel Ives, a longtime Apple advocate, criticized Trump’s 34% tariff on imports from China, labeling it a “jaw-dropper” and expressed concerns that the tech sector faces a difficult road ahead.

Moreover, efforts to diversify production to Vietnam and India are now under threat as Trump announced tariffs of 46% and 26% on imports from those nations, respectively.

This situation results in a supply chain crunch that may compel Apple to either absorb these additional costs or pass them on to consumers—both outcomes are unattractive.

Read also: Meta, AMD, Apple, AT&T Among Major US Tech Giants Facing Potential Losses Due to Tariffs: Here’s Why

Bearish Trends in Apple’s Stock Performance

Chart created using Benzinga Pro

Amidst this downturn, technical indicators have turned against Apple’s stock. Currently trading at $202.77, Apple’s shares are below both the eight-day and 20-day simple moving averages (SMAs), signaling bearish conditions for active traders.

The 50-day and 200-day SMAs, located much higher at $229.72 and $229.15 respectively, suggest further declines may be forthcoming. Should the downward trend persist, a convergence of these moving averages could lead to a Death Cross, solidifying the emerging bearish trend.

Additionally, the MACD (moving average convergence/divergence) is reported at negative 4.08, indicating a strong bearish outlook. Meanwhile, the RSI (relative strength index) is around 31.70, nearing oversold territory. A further decrease in the RSI could prompt a rebound, provided there is sufficient buying interest.

Will Apple Recover from the Tariff Fallout?

During Trump’s first term, Apple successfully navigated major tariffs largely due to its lobbying efforts.

The crucial question remains whether this pattern will repeat or if the new tariffs will persist, which could exert long-term pressure on the company’s profit margins.

Amidst ongoing uncertainty in the tech sector, some investors speculate that the market reaction may be overstated, yet the fate of Apple’s stock largely hinges on future developments from Washington.

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