Trump's tariff policy is like a punch to the point of Apple.

Apple's shares plunged 7.1% after U.S. trading on Wednesday, and if the decline continues into today's regular trading session, it will be Apple's worst one-day performance since September 3, 2020.

The plunge stemmed from investors' concerns about the prospect of profit damage to Apple's production chain and rising costs of its products after the tariffs hit it. Apple doesn't have any factories in the United States, and almost all of its products are made overseas, making the company particularly vulnerable under Trump's new tariffs.

According to Da Mo's analysis, the new tariff policy will increase Apple's annual costs by $8.5 billion, which is equivalent to a reduction of about 7% in profits next year.

Cook reduced his holdings and cashed out more than 100 million dollars for three consecutive times

According to Apple's filing with the U.S. Securities and Exchange Commission (SEC), Cook sold 108,100 shares of Apple stock on Wednesday local time, cashing out about $24.18 million, equivalent to about 176 million yuan. This is the third time Cook has sold Apple shares in the past year, and he has cashed out more than $110 million, or about 800 million yuan.

The shares sold this time are actually from the restricted stock units (RSUs) granted to Cook in 2020, which were released in three tranches, in 2023, 2024 and 2025. Therefore, this operation was carried out according to plan, and it was not improvised. Typically, these shares are sold the day after the ban is lifted on April 1 of each year. As of April this year, Cook still held 3.28 million shares of Apple stock, with a market capitalization of about $550 million.

Although the reduction was carried out according to the original plan, Cook's move attracted the attention of the market because Apple's stock price has been falling. Apple's share price has fallen more than 10% so far this year, outperforming major stock indexes, according to the data. Moreover, judging from the latest financial report, Apple's revenue and net profit growth are not too optimistic. In the first quarter of fiscal 2025, Apple's total revenue reached $124.3 billion, up 4% year-over-year, and its net profit was $36.3 billion, also up 4%.

Tariffs could hit Apple hard

Apple's core production bases around the world will be severely suppressed by the "reciprocal tariff" policy, which makes the "Apple global supply chain" that Cook has painstakingly operated for many years face an existential moment.

According to the reciprocal tariff document issued by the White House, the distribution in the "Apple supply chain" is:

In China, a core region that produces most Apple products except for mobile phones, will face a 34 percent tariff.

Vietnam, where it is mainly responsible for the production of non-mobile phone products, was subject to a 46% tariff.

India, the main producer of iPhones and AirPods, is subject to a 26% tariff.

Malaysia and Thailand, where Macs are mainly produced, face tariffs of 24% and 36%, respectively.

These high tariffs have undoubtedly put significant cost pressure on Apple. Apple's stock plunged 7% in after-hours trading on Thursday, becoming one of the biggest victims of the tariff adjustment.

Earlier this year, Apple pledged to invest up to $500 billion in the United States over the next four years (which is much faster than under the Biden administration when inflation is taken into account) and plans to gradually move some production back to the United States in an attempt to persuade the Trump administration to continue to grant Apple tariff exemptions for a second term.

However, if Apple does move its production base back to the United States, the cost of production will increase significantly. This will not only affect the final selling price of the product, but may also squeeze the company's profit margins.

The market reaction is a bit "overdone"?

Although the market reacted very strongly to Apple's impact on the tariffs, Wedbush analyst Ives believes investors may have "overreacted" a bit this time. "Investors are always used to selling stocks before asking questions, and we saw that during the Trump 1.0 era," he said.

In other words, the market sometimes overreacts to short-term uncertainty, but in the long run, things may not be as bad as everyone thinks.

Jingtai believes that Apple may choose to spread the additional costs of tariffs across the supply chain. For example, by negotiating with suppliers, adjusting production layouts, etc., to relieve pressure. Even if the end consumer feels the price increase, Apple can still rely on its strong brand presence and rich ecosystem to maintain a high customer retention rate.

You know, Apple's service business (such as App Store、Apple Music, iCloud, etc.) currently account for about 21% of its total net sales, which is relatively stable and has high profit margins, which can provide some cushion for the company.

Angelo, a technology analyst at CFRA Zino is also relatively optimistic. "Even without tariff exclusions, the situation may not be as bad as everyone fears," he said. Over the past six years, Apple's gross margin has risen from around 38 percent to 47 percent, giving them some leeway if they have to withstand tariff shocks. ”

Apple has dramatically improved profitability over the past few years, which gives it more flexibility to respond to potential tariff pressures. Even as costs rise, Apple may absorb these effects by optimizing its supply chain, improving efficiency, or raising prices slightly.