Apple stock (NASDAQ: AAPL) is faced with a major headwind from President Trump’s latest tariff package.
The consumer electronics giant has 90% of its manufacturing capacity in China. Before April 2, a 20% duty had been levied on imports from the Asian nation. Those duties have now been hiked to 54%, following yesterday’s 34% hike.
In an April 3 report, Citibank analysts estimated that if the business does not manage to secure an exemption or pass on the price increase to consumers, it could see gross margins shrink by as much as 9%. On top of that, a 26% increase in tariffs on Indian imports could lead to an additional 0.5% drop in gross margins.
On the day of the announcement, Apple stock closed at $223.89. By press time on April 3, in the pre-market trading session, AAPL shares were changing hands at a price of $208.58, having marked a 6.83% drop.
With this latest move, AAPL stock is now down 11.47% over the past thirty days, and 16.71% on a year-to-date (YTD) basis, making it one of the worst Q1 performers in the entire tech sector.

Despite this recent development, Citi maintains a surprisingly bullish stance regarding the tech titan’s future prospects.
Citi reiterates ‘Buy’ rating on Apple stock, but…
While it did note possible headwinds, Citi kept a ‘Buy’ rating on Apple shares. In addition, the American multinational investment bank and financial services company maintained a $275 price target, which implies a 31.84% upside from current prices.
With that being said, Atif Malik, the analyst who issued the updated research note, specified that Citi is awaiting updates from both Apple and the administration regarding the specific details as to how the tariffs will be implemented.
Seeing as how the new duties are slated to go into effect on April 9, readers should keep an eye out for updated coverage from the Wall Street firm. On top of that, as the stock is Warren Buffett’s largest holding, investors ought to examine whether the billionaire has increased or reduced his stake in the company when Berkshire Hathaway’s next 13-F filing is published around May 15.
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