Trump’s new foreign trade move hit Apple: 250 billion dollars of loss – Cyprus Newspaper
The new Customs Tax Package announced by US President Donald Trump caused fluctuation in the world stock exchanges, while Apple’s shares have also been a big decline. The stock value of the technology giant fell by 8.5 percent with the start of transactions on the New York Stock Exchange.
Apple’s market value fell from $ 3.37 trillion to 3.12 trillion dollars in just a few hours. This development caused the company to lose more than $ 250 billion.
The production network in Asia is under pressure
The new customs tariffs announced by Trump will directly affect Apple’s production centers and suppliers in China, Taiwan, India and Vietnam. The tariffs in question are expected to cover the iPhone, iPad, Mac and other accessories models of the company.
Citi analysts, Apple’s production of more than 90 percent of the production of China, said that these products will be subject to customs duties up to 54 percent in exports to the United States.
In Vietnam and India, where Apple’s various products, including AirPods and smart watches, will apply 46 percent and 26 percent in India, respectively.
Folks from Taiwan are exempt for now
The semiconductors imported from Taiwan have been exempted from new customs duties for now. This is protecting Apple’s cooperation with Taiwan -based chip manufacturer TSMC for now.
The new TSMC factory established in Arizona is expected to represent a significant portion of billions of dollars of investment promised by Apple and Nvidia to increase the production in the United States in the coming years. However, the new 20 percent tax imposed on imports from the European Union can also make Apple’s work with ASML, another Dutch -based chip supplier.
