The new US tariffs wipe out one tenth of Apple's stock value in just one hour

Late yesterday, President Trump presented his tariffs to the world as he believes that the United States has been wrongly treated with bad trade deals for many years. Whether this is actually true is hotly debated, but it is clear that it has consequences and risks leading to a trade war as well as new alliances and cooperation between countries.

One company that has already been hit hard by these new tariffs is Apple. The company relies heavily on manufacturing in China, which has seen tariffs increase by 36% since Trump took office. As a consequence, Apple will have to either raise prices significantly and/or cut profits while considering other solutions - something that will obviously take time as there is no abundance of contract manufacturers that can produce cutting-edge technology like Apple's products in extremely high volumes at short notice.

At the time of writing, Apple has fallen 9% on the stock exchange, which means that nearly one tenth of the company's total value has been wiped out in just one hour.

As we could tell you earlier today, there is also the risk that Switch 2 will have to be increased in price. Although this will mainly affect Americans, there is no doubt that it will also affect us, as Nintendo cannot have extremely large price differences in different markets and some of the company's increased costs will probably be passed on to other regions in the world as well.