Key Takeaways
- The Magnificent Seven stocks all fell after Trump unveiled sweeping tariffs Wednesday evening.
- Apple shares have fallen the most. It has a big manufacturing presence in China, which was hit with a 34% import tax.
- The iPhone maker would have to raise prices 6% in order to offset the tariff, JPMorgan analysts estimated.
The Magnificent Seven stocks all tumbled Thursday in the wake of the Trump administration’s sweeping reciprocal tariffs—with Apple (AAPL) faring worst of all.
The iPhone maker’s shares dropped 9% in morning action after President Donald Trump late Wednesday imposed an 34% import tax on China, where Apple manufactures about 90% of its hardware. That could spell further trouble for Apple if China levies retaliatory tariffs.
“The magnitude of the tariffs announced is much higher and broader than anticipated,” JPMorgan analysts wrote Thursday of Apple. As a result, they wrote, “price increases to offset the headwinds will be more than just modest.”
The analysts estimated that Apple would have to raise its prices 6% in order to mitigate the impact of tariffs if the company isn’t given an exemption.
Apple was exempted from tariffs imposed by the first Trump administration in 2018, and analysts at Jefferies said they expect it to receive a carveout again. Helping the Apple’s case is an announcement in February that it plans to invest more than $500 billion in the U.S. over the next four years, the analysts said.
Apple’s peers in the Magnificent Seven also dropped. Amazon (AMZN) shares slid more than 7%, while Nvidia (NVDA), Meta (META), and Tesla (TSLA) each fell about 6%. Alphabet (GOOGL) and Microsoft (MSFT) dipped 4% and 3%, respectively. (Read Investopedia’s live coverage of today’s markets here.)
The Roundhill Magnificent Seven ETF (MAGS), which tracks the group, lost more than 10% of its value in March. All seven companies are trading in the red for the year.
