Apple's Shares Plunge Amid US Tariffs on Asian Supply Chains

Apple's shares faced a steep decline due to US tariffs on its Asian supply chains, affecting production hubs in China, India, and Vietnam. The tariffs range from 24% to 54%. This has resulted in a substantial market value loss for Apple and raised the strategic positioning of India in electronics trade.

Apple's shares experienced a significant downturn last Thursday, marking the steepest decline in five years on US stock markets. The drop was triggered by reciprocal tariffs imposed by the US, affecting Apple's key manufacturing locations in Asia, including China, India, and Vietnam, with tariffs as high as 54%.

The tariffs have put heavy pressure on Apple's supply chain, particularly in China, which was hardest hit with combined levies amounting to 54%. Despite efforts to diversify production, a significant portion of Apple's manufacturing remains concentrated in China, leaving it vulnerable to these tariffs.

In response to the shifting landscape, industry analysts project that Apple might move up to 25% of its iPhone production to India. The strategic positioning of India amidst these tariff changes is noteworthy, with the potential to transform trade dynamics if a comprehensive Bilateral Trade Agreement with the US is achieved. Foxconn and Tata Electronics are poised to play significant roles in this transition.

(With inputs from agencies.)