Shares in tech giants like Apple and Amazon were down today amid news that the US President Donald Trump could unveil fresh tariffs of around 10 per cent on $200bn worth of Chinese goods, and that Beijing will retaliate.
China is one of Apple’s biggest markets and the tech group has already warned that tariffs on Chinese goods could hurt its business.
While Apple’s share price is down 1.5 per cent, Amazon’s stock is down 2.6 per cent.
Tariffs have put the U.S. in a very strong bargaining position, with Billions of Dollars, and Jobs, flowing into our Country – and yet cost increases have thus far been almost unnoticeable. If countries will not make fair deals with us, they will be “Tariffed!”
— Donald J. Trump (@realDonaldTrump) September 17, 2018
“Apple and some of the chipmakers are down because of fears they may get hit with tariffs,” Kim Forrest, senior portfolio manager at Fort Pitt Capital told CNBC. Forrest also noted that “some of the leadership may be a bit long in the tooth. If you bet these names will go up in perpetuity, … I’m going to bet against you.”