Apple, one of the world's most valuable technology giants, has suffered one of the sharpest declines in its history, with a market capitalization loss of approximately 640 billion dollars in the last three trading days. The main reason behind this collapse was US President Donald Trump's threat of a new 54 percent tariff on China.
Billions vaporized at Apple
While the stock market generally performed better on Monday compared to the previous two trading days, Apple was once again hit, losing 3.7 percent. Apple shares, which were traded at 223.89 dollars just a few days ago, fell to 181.46 dollars, a 19 percent decline. The monetary equivalent of this was 638 billion dollars.
Apple's dependence on China is at the center of this crisis. Many of the company's flagship products, especially the iPhone, are made in China. Although Apple is trying to shift production to countries such as India, Vietnam and Brazil, it is almost impossible to remove China from the supply chain in the short term.
China tariffs could rise to 100 percent
In line with Trump's recent statements, the tariffs on imports from China to the US have reached 54 percent. In response, China announced that it would impose a 34 percent tariff on products coming from the US. Trump, on the other hand, gave China one day to back down from this decision and said that tariffs would increase to 100 percent otherwise.
Market analysts say Apple may have to pass these increased costs on to consumers. According to the evaluations made, iPhone prices may increase by 30 to 45 percent.
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