President Trump's announcement of mutual tariffs hits the tech industry hard, causing stock prices of Apple, Amazon, Meta, NVIDIA, Alphabet and Microsoft to plummet
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US President Donald Trump announced in a speech at the White House on April 2, 2025 that he would introduce ' reciprocal tariffs ' to raise the tariffs of his own country based on the tariffs and non-tariff barriers of the other country. Large-scale tariffs have been imposed on imports from Japan, China, India, Vietnam, and other countries, dealing a major blow to the high-tech industry.
Apple leads a drop in tech stocks after Trump tariff announcement
https://www.cnbc.com/2025/04/02/-apple-leads-drop-in-tech-stocks-after-trump-tariff-announcement.html
Trump's New Tariffs Test Apple's Global Supply Chain - The New York Times
https://www.nytimes.com/2025/04/02/technology/trump-tariffs-apple-iphones.html
Tariff Loophole That Helped Temu, Shein Shipments Will Close May 2 - Bloomberg
https://www.bloomberg.com/news/articles/2025-04-02/de-minimis-tariff-loophole-that-aided-temu-shein-to-close-may-2
President Trump announced that the reciprocal tariffs would impose a uniform 10% basic tariff on all imports, with additional tariffs added for each country and region. As a result, imports from Japan will be subject to a 10% basic tariff + 24% reciprocal tariff = a total of 34% tariff, and imports from China will be subject to a 20% additional tariff + 34% reciprocal tariff = a total of 54% tariff. In addition, high reciprocal tariffs of 26% will be added to India and a whopping 46% to Vietnam.
The announcement of the reciprocal tariffs was a major shock to the US economy, especially the high-tech industry, which relies on global supply chains. At the end of trading on April 2nd, major US technology stocks all fell sharply, with Apple's stock price falling by more than 7%. Amazon also recorded a maximum drop of about 7%. Meta and NVIDIA each fell by about 5%, Google's parent company Alphabet fell by about 4%, and Microsoft fell by about 3%.
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Among these, the impact on Apple is particularly severe. Many of Apple's flagship products, iPhones and iPads, are manufactured in factories in China and Vietnam, so there are concerns that the strengthened tariffs will lead to higher product prices and damage to the supply chain. Analysts believe that Apple will be unable to absorb the increased manufacturing costs, and that they will likely end up being passed on to consumers.
In addition, on the same day, the White House announced a review of the de minimis system, which was applied to some low-priced products imported into the U.S. Under the de minimis system, products worth less than $800 (approximately 118,000 yen) per day were exempt from tariffs, but this system will be abolished from May 2, 2025, which is expected to have a major impact on Chinese discount online shopping sites such as Temu and SHEIN, which have been popular for their low prices using this system.
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In an official statement, the White House emphasized that 'China is deeply involved in America's synthetic opioid (fentanyl) crisis, and the de minimis system has been a breeding ground for it,' and positioned the review of the de minimis system as 'a national security response to prevent the inflow of fentanyl raw materials from China and stem the drug crisis in the United States.'
By Gage Skidmore
The current tariffs and system reforms are positioned as part of President Trump's tough trade policy to protect the American economy, but they will also have a significant impact on international supply chains and consumer prices, and could have major ripples in future economic and foreign policy.
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