Apple (AAPL) shares fell over 7% before the bell, still leading the sell-off in tech stocks that followed Trump’s bigger-than-expected tariffs.
Apple’s overseas production hubs are particularly vulnerable, given the iPhone maker’s presence in China, Vietnam, and India. These countries will face tariffs of 34%, 46%, and 26%, respectively, once additional levies are taken into account.
“Apple produces basically all their iPhones in China, and the question will be around exceptions and exemptions on this tariff policy if those companies are building more operations, factories, and plants in the US like Apple announced in February,” Wedbush analyst Dan Ives said in a note to clients on Wednesday.
Elsewhere in techs, chip stocks should also face significant pressure, with Nvidia (NVDA) and others exposed to China and Taiwan supply chains.
“The worry will be around pricing and margin impacts along with what this means for the global supply chain looking forward,” Ives said.
For now, the analyst continues to believe major negotiations will happen over the coming months as companies attempt to navigate “this new world of tariffs.” Until then, he warned, “tech stocks will clearly be under major pressure.”