Big Tech after taxes worth $1816 billion less, especially Apple hit hard

This article was last updated on April 8, 2025

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Big Tech after taxes worth $ 1816 billion less, especially Apple hit hard

The largest American tech companies – also known as Big Tech – have been given a big blow through the American import duties that President Trump has introduced. After a tight week of unrest in the financial markets, the seven largest American tech companies together lost 1816 billion dollars (1660 billion euros) in stock market value.

The blow was greatest for Apple. The company was worth $ 640 billion less in recent days. A “complete disaster”, a “trade war mare” and a “stock blood bath”, the analyzes in American media sounded. Apple is hit hard because it mainly earns money with the sale of devices, much more than, for example, Facebook and Google do. Those devices are mainly made in China.

China is no longer the only country where Apple has its iPhones made. During the first presidential period of Trump (2017-2021), the company decided to partly move its production to other countries. The import duties for China then played a role. But the Coronacrisis gave the decision an extra boost, because many factories in China closed.

Although China is still important for Apple – most iPhones are made there – part of the iPhone production nowadays takes place in India. Apple products are also made in Vietnam, such as tablets and wireless earbuds. Now that the US is calculating import duties for all those countries, it is becoming more expensive to bring these devices to the American market.

‘Relocation then logical’

At the time, moving was a very logical step for Apple, says Steven Brakman, professor of international economy at the University of Groningen. “It’s a good example of how companies react. What can you do with possible import duties? Spreading your production.”

But the relocation now leads to Apple getting hits in several places. Trump does not only focus on China: the world has to deal with taxes. “They thought they would make the right decision at the time. Now they are still ‘caught’ and they are at high rates.”

The taxes are greatest for products from China (54 percent). But other countries where Apple has its products made are also struck. For example, with 46 percent, Vietnam does not get much better and India is confronted with taxes of 26 percent.

The advantages and disadvantages of import duties

Because lower import tariffs apply to India, Apple wants to have more iPhones made there instead of in China, writes The Wall Street Journal. According to the newspaper, this is an emergency solution for the short term. “You don’t just move,” says Brakman. “It costs a lot of money: you don’t just have a factory. It is not for nothing that Apple is in China: the quality is good and the costs are low.”

During Trumps first presidency, Apple was already toy of the trade war between the US and China. Apple CEO Tim Cook ultimately managed to prevent the company from paying extra to bring iPhones made in China to the US. Apple tried Also to come under the import duties this time, but so far without results. Analysts expect Apple products in the US to become more expensive due to the import duties.

It is uncertain whether we will also pay more for Apple devices in Europe. “We may be lucky because the products go directly from Asia to the European Union,” says Brakman. On the other hand, Apple can also choose to distribute the pain over all countries where the company sells iPhones.

Apple does not pass on the price to consumers, then the company will have to pay the extra costs from its own pocket or negotiate with the manufacturers abroad, so that they take part in their account. In all cases, Apple’s profit is under pressure due to the taxes.

‘Uncertainty great’

And Trumps purpose of all this, namely that companies are moving their production to America? Even if Apple chooses for that, it probably takes years before a move is completed. By that time, Trump is no longer a president.

“In any universe, Apple moves its iPhone production to the US”, say The American journalist Mark Gurman, who follows Apple well, therefore. “I think Apple will wait before it makes big investments,” says Brakman. “The uncertainty is now so great. Maybe Trump will abolish everything again in a week.”