The trade war goes up and Apple’s stock price goes down.
What you need to know
- Apple’s stock has had its biggest one-day drop since the month of August.
- President Trump’s comments pushing the US/China trade war further down the road seem to be the cause.
- The company is about to deal with even more tariffs on December 15th if an agreement is not reached.
Today, Apple’s stock has suffered its biggest one-day loss since the month of August, according to Bloomberg. The company’s shares dropped as much as 3% during trading, all fueled by the rising tensions in the trade war between the United States and China.
The reason for today’s drop in stock price can at least partially be attributed to President Trump’s comments that he does not “have a deadline” to sign any trade agreement with China and that he is willing to wait another year if necessary to secure a deal:
“If it’s not going to be a good deal, I’m not signing a deal…it can’t be an even deal. If it’s an even deal, it’s no good.”
Wedbush analyst Daniel Ives wrote that “Apple continues to be in the crossfire” of the trade war and that the company has “the most to lose if this tariff war does not see a truce going forward.” If an agreement is not signed, Apple will continue to see more of its products affected by tariffs, with the latest set to go into effect on December 15th.
Apple has made recent efforts to ease or remove the tariffs from its products, going as far as Tim Cook himself giving President Trump a tour of their Mac Pro production in Texas and hiring lobbyists to push the company’s trade agenda in Washington. So far, success has been hit or miss for the company.
Source of the article – iMore