Apple Shares Are Pressured Again Due To Escalation Of Tariffs From China And The European Union Against The US

Apple shares are again facing great pressure (photo: x @AsadATOor)

JAKARTA - Apple shares are again facing intense pressure after China and the European Union increased their return rates on the United States tariff policy. This sparked concerns among investors that President Trump would return to respond with more aggressive measures.

The increasingly heated rate war has rocked the global stock market in recent days. Many large companies, including Apple, experienced a drastic decline in valuation due to the massive tariff policy of the Trump administration.

At the close of trading on Tuesday, Apple's shares were at 172.42 US dollars, after four days of experiencing heavy selling pressure. However, in pre-market trading, Apple's share price fell further to around 169 US dollars, before opening slightly up at 172.18 US dollars. At the start of trading, Apple's stock had jumped by around $3, following the tentative upward pattern that also occurred on the previous day, before falling back.

As a result of this decline, Apple even had to be willing to lose its status as the most valuable company in the United States. At Tuesday's market close, Apple's market cap was recorded at USD 2.59 trillion, below Microsoft, which is now taking over the top position with a valuation of USD 2.64 trillion.

All of this was triggered by the US's decision to increase import rates from China by 34%. In retaliation, China applied the same tariff for imported goods from the US. However, instead of reducing tensions, Trump threatened to increase the tariff to a total of 50% if China did not back down from its decision.

On April 9, after China remained in its stance, the US immediately imposed an additional tariff increase, bringing the total import rate from China to 104%. Not standing still, China has also raised their rates against US products by 84%, up 50% from before.

China's State Council Tariff Commission called the additional tariff threat from the US an error piled up on errors in its official statement.

Now, it is President Trump's turn to wait for his reaction to the latest response steps from China. Many believe that further escalation is almost certain, which has the potential to shake up the global financial market even more severely.

Not only China, but the European Union also announced their countermeasures against US tariff policies just moments before the market opens.

The European Union considers US tariffs unfounded and detrimental to both sides, as well as to the global economy as a whole. The EU prefers a fair and mutually beneficial settlement, "said a European Commission statement, Tuesday morning local time.

The new EU rates will take effect on April 15, and the second group will follow on May 15. Although the details of the rates have not been announced in full, this policy further increases uncertainty in the market.

Apple's unstable pre-market stock conditions reflect investor concerns about the direct impact of tariffs on Apple's supply chain, which is mostly still based in China. Many Apple products are now at risk of high tariffs when entering the US market.

Apple itself has tried to anticipate this impact by hoarding stock of products in the US that have not been subject to tariffs, as well as diverting some production to other countries that have a lighter tariff burden. However, the process of transferring production from China to other countries, especially to the US as Trump wants is not something Trump can do in a short time. This change could take years, maybe even beyond Trump's term as President.

However, the uncertainty about the direction of this trade conflict makes it difficult for investors to make decisions. No one knows when this tariff war will end, or how much impact it will have on the global economy and companies like Apple.

With pressure from the world's two major economic powers China and the European Union which now openly challenge US tariff policy, Apple seems to have to prepare for a market storm that is far from subsidence.