Apple Stock Falls to 11-Month Low Amid Escalating U.S.-China Trade War

Apple Inc. (NASDAQ: AAPL) shares tumbled to an 11-month low on Tuesday, losing its spot as the most valuable publicly traded company amid mounting concerns over U.S.-China trade tensions. The stock dropped 1.8% in after-hours trading to $169.49, following a 4.8% decline during the regular session—marking four consecutive days of steep losses.

Apple’s market capitalization now stands at $2.59 trillion, falling behind Microsoft (NASDAQ: MSFT), which holds a $2.64 trillion valuation, according to Investing.com. The sharp selloff was triggered by growing fears over President Donald Trump’s aggressive tariff strategy, particularly targeting imports from China and Taiwan.

Starting Wednesday, the administration plans to impose a 104% cumulative tariff on all Chinese goods, significantly impacting products manufactured in China—including Apple’s flagship iPhones. With most iPhones assembled in China, the tech giant faces tough choices: raise prices or absorb costs, both of which could dent sales and margins. Analysts warn iPhone prices could surge by up to $1,000 due to the tariffs.

Reports of panic buying at U.S. Apple stores reflect consumer fears of looming price hikes. Meanwhile, China has responded with retaliatory tariffs, fueling concerns of a prolonged trade war.

Since peaking at $3.2 trillion in December, Apple has lost nearly $1 trillion in market value. Despite the downturn, analysts at Bank of America see a potential buying opportunity, noting Apple’s favorable risk/reward profile as its forward P/E ratio declines.

The escalating trade conflict continues to cloud the tech sector’s outlook, with investors closely watching policy developments that could reshape global supply chains and consumer pricing.