Could the Trade Fight Take a Bite Out of Apple?

Published On Feb 5, 2025, 8:32 AM

The article discusses how a potential investigation by China into Apple's App Store practices is a consequence of the ongoing trade tensions between the U.S. and China. This has resulted in a decline of over 2% in Apple's shares during premarket trading, leading to a loss of approximately $90 billion in market value. The investigation raises concerns about how U.S. trade policies may negatively impact American companies, particularly tech giants like Apple.

Stock Forecasts

AAPL

Negative

The investigation into Apple's App Store policies could lead to increased regulatory scrutiny and potentially unfavorable outcomes for the company, which may hurt its stock price in the near term. Given the current market reactions, the forecast is negative for Apple's stock.

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The development comes a day after China announced a wide range of measures targeting U.S. businesses including Google, farm equipment makers and the owner of fashion brand Calvin Klein, minutes after new U.S. tariffs on Chinese goods took effect. The country's State Administration for Market Regulation is reviewing Apple's policies, including its up to 30% commission on in-app purchases and restrictions on external payment services and App Stores, the report said.

President Donald Trump's tariff push is underway and a recent Fox News Poll shows that voters are skeptical of tariffs and a majority believe they will hurt the U.S. economy.

US markets bounce back from a drastic shake-up as tariffs enter a 30-day delay.

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