Shares of Apple (AAPL) crumbled in late trading on April 8 after the White House announced that it plans to levy a 104% tariff on goods imported from China.
The latest salvo from the administration of U.S. President Donald Trump comes in response to China’s threat to impose a 34% tariff on all American imports starting April 10. News of the increased U.S. duties sent Apple shares down 3% and to their lowest level in nearly a year. Apple makes it signature iPhone almost entirely in China.
Uncertainty is growing around how Apple will navigate Trump’s tariffs on China. Some analysts have calculated that the new tariffs could add as much as $350 to the cost of a new iPhone, with higher prices potentially hurting consumer demand for the electronic devices. AAPL stock is down 30% this year.
Rising Uncertainty
It remains unclear how Apple will deal with the sharp increase in tariffs on Chinese imported goods. The consumer electronics giant won an exemption from tariffs during Trump’s first term in office, but there’s no guarantee it will be granted a similar exemption this time.
At a press briefing on April 8, White House Press Secretary Karoline Leavitt signaled out Apple by name when announcing the latest Chinese tariffs, saying that President Trump “believes we have the labor, we have the workforce, we have the resources,” to bring iPhone manufacturing back to America.
Is AAPL Stock a Buy?
The stock of Apple has a consensus Moderate Buy rating among 32 Wall Street analysts. That rating is based on 17 Buy, 11 Hold, and four Sell recommendations assigned in the last three months. The average AAPL price target of $247.28 implies 41.55% upside from current levels.
