Apple Stock (AAPL) Plunges 13.3% as Tariff Relief Seems Unlikely
The Apple stock resumed the decline this week, falling 7.5% today, as stock markets continued yesterday's freefall.
Live AAPL Chart
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The Apple stock resumed the decline this week, falling 7.5% today, as stock markets continued yesterday’s freefall.
Sharp Reversal from January Highs
Apple’s stock has seen a steep decline of 13.3% this week, extending a bearish move that began after hitting a 2024 high above $260 in early January. The reversal started with a doji candlestick pattern, a classic signal of trend exhaustion after a long uptrend. Since then, the momentum has flipped, and pressure has intensified.
Apple Stock Chart Weekly – Heading for 2024 Lows?
Investor sentiment took a major hit after new U.S. trade tariffs were announced late Wednesday, with Apple opening Thursday below $205.50, nearly 9% lower than the previous close of $223.89. The stock continued its slide, closing at $188.40 on Friday, and dipping further in after-hours trading to $187.50.
The impact of the proposed tariffs is especially harsh for Apple, as most iPhones are assembled in China. If tariffs raise the total import tax rate to 54%, Apple may be forced to increase prices or absorb significant cost pressures. Analysts estimate this could cut Apple’s 2025 earnings by as much as 28%, assuming no tariff exemptions are granted.
No Clear Tariff Exemption Ahead
CEO Tim Cook’s $500 billion pledge toward U.S. manufacturing may not be enough to sway policymakers. Compared to 2018, when exemptions were possible, the political climate now makes special treatment far less likely—with some placing the chances of a tariff exemption at just 20%.
Technical levels suggest further weakness ahead. The 50-week SMA has flipped to resistance, and sellers are now targeting the 200-day SMA near $177 as the next major support.
Conclusion: More Selling pressure Ahead?
With tariffs likely to squeeze both margins and demand, and no clear signs of policy relief, Apple faces a high-risk environment heading into Q2. While the stock has weathered macro shocks before, this latest combination of trade policy and technical breakdown may keep the pressure on for now.
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