The tariff policy announced by Trump on April 2 is like a heavy blow, hitting the core of Apple Inc.According to CCTV News, on April 2 local time, the White House issued a statement saying that President Trump will impose a 10% &#34;baseline tariff&#34; on all countries, which will take effect at 12:01 AM Eastern Time on April 5. In addition, Trump will impose higher &#34;reciprocal tariffs&#34; on the countries with the largest trade deficits with the U.S., which will take effect at 12:01 AM Eastern Time on April 9.On Wednesday after-hours trading, Apple's stock price plummeted by 7.1%. If this decline continues into today's regular trading hours, it will mark Apple's worst single-day performance since September 3, 2020.<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/ade9b888-08ce-447f-8a84-2ed486d52155.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/ade9b888-08ce-447f-8a84-2ed486d52155.png"/>This plunge stems from investors' concerns about the impact of tariffs on Apple's production chain, leading to profit losses and rising product costs. Apple has no factories in the U.S., and nearly all of its products are produced overseas, making the company particularly vulnerable under Trump's new tariff policy.Apple previously received tariff exemptions during the first Trump administration, but this time it was not spared, even though the company had promised to invest $500 billion in the U.S. earlier this year.<h2>Global production bases hit hard, with tariff rates as high as 46%</h2>Trump's tariffs not only strike at Apple's main production bases but also include other production centers, undermining Apple's efforts to diversify its supply chain over the years:<ul><li>India (where Apple is increasing iPhone and AirPods production) will face a 26% reciprocal tariff;</li><li>Vietnam (producing some AirPods, iPads, Apple Watches, and Macs) will be subject to a 46% tariff;</li><li>Malaysia (where Apple is increasing Mac production) will face a 24% tariff;</li><li>Thailand (producing some Macs) will be subject to a 36% tariff;</li><li>As an EU country, Ireland (producing some iMacs) will face a 20% tariff.</li></ul><h2>New tariff policy may lead to a 7% decline in Apple's profits next year</h2>According to The New York Times, iPhones, iPads, and Apple Watches sold by Apple account for three-quarters of its nearly $400 billion annual revenue.And according to Trump, products will not be exempt from tariffs, which means Apple must either absorb these costs, thereby reducing profits, or indirectly pass the increased costs onto customers by raising prices.Bloomberg Intelligence analysts Anurag Rana and Andrew Girard stated in a report:<blockquote>&#34;The new tariffs may squeeze Apple's profit margins, as we do not expect the company to raise prices to offset the impact. If Apple does raise prices, it will face the challenge of unstable consumer confidence.&#34;</blockquote>Morgan Stanley analysis points out that the new tariff policy will increase Apple's annual costs by $8.5 billion, which will reduce the company's profits next year by $0.52 per share, approximately $7.85 billion, equivalent to a profit decrease of about 7% next year.<h2>Gross margins and brand appeal remain supported</h2>Despite the strong market reaction, Wedbush's Ives believes that investors' sell-off response at this moment may be too hasty:<blockquote>&#34;Investors tend to sell stocks first and ask questions later, which we saw during the 'Trump 1.0' era.&#34;</blockquote>There are views that Apple may choose to spread the costs across the entire supply chain. If consumers ultimately feel the cost increase, Apple will rely on its brand strength and rich ecosystem to maintain high customer retention rates, with service revenue currently accounting for about 21% of its total net sales.CFRA technology analyst Angelo Zino also holds a relatively optimistic view, stating:<blockquote>&#34;Even without exemptions, the situation may not be that bad. Over the past six years, Apple's gross margin has expanded from around 38% to 47%, which gives them some leeway, if they have to bear the impact of tariffs.&#34;</blockquote>Ives added:<blockquote>&#34;Currently, the White House has stated that it will not seek to reach an agreement... but we still believe that in the coming months (they) will engage in significant negotiations with various countries and businesses to address this new tariff world.&#34;</blockquote>

AAPL

Due to Apple's factories being entirely located overseas, investors are concerned that its production chain will be hit by tariffs, impacting profits. Morgan Stanley analysis states that the new tariff policy will increase Apple's annual costs by $8.5 billion, equivalent to a reduction of about 7% in next year's profits. However, there are also viewpoints suggesting that Apple's gross margin and brand appeal will offset some of the profit loss, and there is still room for negotiation on the tariff policy, providing some leeway for easing

- On April 2, President Trump announced a 10% baseline tariff on all countries, effective April 5, impacting Apple significantly.  
- The new tariffs could lead to a 7% profit decline for Apple, as the company relies on overseas production and faces increased costs without exemptions.  
- Analysts suggest that while the market reacted negatively, Apple's strong brand and profit margins may help mitigate the impact of these tariffs in the long term.

Apple is in trouble this time