Apple, Nike, Amazon in the most difficult brands that may be subject to due to Donald Trump’s reciprocity tariffs
Donald Trump’s new tariffs shocked global stock markets, with companies suffering hundreds of billions of dollars in a day on Thursday.
Trump, of different companies around the world, has seen a glimpse of the global market as of 50% tariffs on Trump, ready to wreak havoc on their business, when it closed on Thursday.
U.S. giants such as Apple, Nike and Amazon have suffered some of the biggest declines in their stock prices and market value, with investors responding to concerns about potential price increases and slower consumer spending.
Here are some of the brands that are most sensitive to Trump tariffs and may lose huge amounts.
apple
Trump’s tariffs impose the highest allegations on many countries against China’s major alternative production hubs. Although China slapped the face with a 54% tariff, Asian countries such as Vietnam and Cambodia were 46% and 49% respectively. India, on the other hand, faces a tariff rate of 26%. Interestingly, companies like Apple have moved their production bases to countries such as Vietnam and India and made hardware in China, which has caused it to suffer.
The market valuation of the largest listed company fell by $300 billion on Thursday due to concerns that tariffs would increase the cost of its products.
Nike
Nike Jordan’s price could rise as most of the company’s factories are located in Asian countries facing the highest Trump tariffs. According to a report by the Guardian, factories in China, Vietnam and Indonesia produced 95% of Nike shoes last year.
The company is already facing heat, losing $13 billion in market valuation Thursday, and its stock fell more than 14% during the trading period.
Amazon
Amazon is a “magnificent 7” large technology company that has also been affected by Trump’s tariffs. Amazon, a leading consumer company, saw its market value fall by nearly $190 billion on Thursday.
According to a report by The Guardian citing Marketplace Pulse, Chinese sellers have more than 50% of the market share in Amazon’s third-party sellers market. This particularly makes tech giants vulnerable to the effects of Trump’s tariffs, instilling investors’ fears.
Boeing
Worrying that Trump’s reciprocity tariffs will break global consumer spending, which also means that the tourism industry will suffer. Thursday’s investor sell-off made Boeing one of the biggest losers in trading on Wall Street on Thursday. Stocks of aircraft manufacturing giants fell more than 10% on the day.
