Apple’s Rally Ends as Tariffs Hit Hard
Apple shares had been showing resilience throughout the week, with investors pushing the stock higher despite bearish gaps at the start of each trading day. However, optimism quickly faded after the latest tariff announcement, which came after US markets had closed. The news triggered a sharp selloff in tech stocks, with Apple’s share price plunging from its session close of $224 to $208, breaking below the March low.
AAPL Chart Daily – The Price Will Open Below the 200 SMA Tomorrow
Since peaking at $260.08 in December 2024, Apple’s stock has been in a steady downtrend, losing about $50—approximately 20% of its value. Yesterday’s 7% drop extended this decline, with analysts now targeting a potential bottom around $200.
New Tariffs Threaten Apple’s Supply Chain
The latest White House trade policy includes a tariff increase that could raise the overall tax rate on Chinese goods to 54%. This consists of an additional 34% levy on top of the existing 20% tariff, which could significantly disrupt Apple’s supply chain.
Apple still relies heavily on China for manufacturing, with iPhones and other key products assembled in Chinese factories before being shipped to the US. If these tariffs go into effect, production costs will rise sharply, forcing Apple to either absorb the cost or pass it on to consumers. This poses a major risk to the company’s profitability and long-term strategy, as shifting production to other countries would take years to implement.
Tim Cook and Executives Sold Millions Before the Crash
Adding to the controversy, a recent document revealed that Apple CEO Tim Cook sold approximately $24 million worth of Apple stock just before the tariff announcement. The filing shows that Cook offloaded 108,136 shares on April 1, immediately after a stock award granted in 2020 became vested.
Other top Apple executives also took similar actions, with Chief Operating Officer Jeff Williams selling nearly $8 million in shares and General Counsel Katherine Adams selling over $8.6 million.
Investor Concerns Mount as Apple Faces Uncertainty
The timing of these stock sales has raised eyebrows, as it appears that Apple’s top leadership cashed out at a peak before the market had fully absorbed the impact of the new tariffs. Investors who remained in the market, however, were hit hard, and Apple’s stock is now facing additional pressure in the coming weeks.
With US-China trade tensions escalating, all eyes are on Apple to see how it navigates these new challenges. Whether the company absorbs the costs, passes them on to consumers, or accelerates its supply chain diversification, the road ahead is anything but smooth.
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