Part 3/8:
The immediate aftermath of these tariff announcements has seen drastic declines for major tech companies, dubbed "Big Tech." For instance, Apple experienced a market valuation loss of $250 billion. At first glance, one might wonder why American companies like Apple would be affected by tariffs imposed on other countries. However, the answer lies in the intricate web of global supply chains.
For example, approximately 90% of the world's iPhones are produced in China, which already faced a 20% tariff on exports to the U.S. The new tariffs have increased this to a staggering 54%. This shift will likely force Apple to choose between absorbing these costs or passing them onto consumers, an inevitable move that impacts prices globally.