Apple sheds $700 billion as Microsoft regains the world's most valuable company title — amid President Trump's steep tariffs on Chinese imports

The title of the world’s most valued company has shifted from Apple to Microsoft, due to the implementation of President Donald J. Trump’s tariffs affecting imports from more than 60 nations, as reported by CNBC.

These nations are labeled as “the most egregious violators” and have been levied extra taxes on Chinese goods, ranging from 11% to 104%. The implementation of Trump’s tariff policies has had a detrimental effect on Apple, as it manufactures around 90% of its products, including the iPhone, in China.

Observing the scene, it became evident that the value of shares belonging to the iPhone manufacturer plummeted by over 20%, translating to a substantial erasure of approximately $700 billion from their market valuation. This significant dip brought Apple’s total market capitalization down to about $2.6 trillion, slightly trailing Microsoft’s impressive figure of $2.64 trillion.

Apple’s lifeline is too costly

Based on an article from The Wall Street Journal, there are indications that Apple might alter its supply chain, potentially transporting iPhones from India to the U.S. Instead of their current setup, which could incur tariffs as high as 104%, this new approach would only result in tariffs of approximately 27%.

Apple’s Chief Executive Officer, Tim Cook, is attempting to secure an exception from President Trump’s tough tariff policies. However, the government is urging Apple to shift its manufacturing operations from China to the United States as part of their larger strategy to enhance American production and safeguard local jobs.

In conversation with CNN, analyst Dan Ives from Wedbush suggested that should Apple decide to completely shift its manufacturing operations to the U.S., the cost of an iPhone might escalate up to $3,500 due to reduced sales, particularly in China, and potential delays in the launch of Apple Intelligence.

It appears that Apple’s business dealings in China are uncertain given the potential harm to their stocks due to President Trump’s proposed increase in tariffs on Chinese imports, which would rise to a staggering 34% as of April 9, 2025.

It’s noteworthy that China retaliated against Trump’s tariff proposal by imposing a 34% tariff on American products. This action prompted President Trump to increase tariffs on Chinese goods by another 50%. In reaction, China has declared it will impose 84% tariffs on U.S. goods in response to Trump’s escalation.

It’s clear that the economic ups and downs we’re experiencing will persist for a while longer, as the U.S. and China work towards a fresh accord. However, during this period, Microsoft seems well-positioned to outperform its closest rivals in the technology sector.

2025-04-09 20:39

Apple sheds $700 billion as Microsoft regains the world’s most valuable company title — amid President Trump’s steep tariffs on Chinese imports

Apple’s lifeline is too costly

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