Quick overview

Apple stock fell nearly 4% on Monday, sending the iPhone maker’s market value sinking below $191 amid tariff pressures on the company after shares had enjoyed what some analysts called a “relief rally” late last week.

Apple’s reliance on Chinese manufacturing and sales makes it vulnerable to policy shifts. Beijing’s reaction to new U. S. chip restrictions has reignited fears of retaliation, dragging down shares tied to China’s tech economy

The concern about Apple is that it will become harder to avoid the crossfire between the U. S. and China as tariffs and restrictions

First, President Trump has spent the last week openly criticizing and calling for the immediate firing of Federal Reserve Chair Jerome Powell. The Fed is the central banking system of the United States, and it has long upheld independence from politics, which most economists feel is essential for the reserve to function effectively.

However, experts are concerned that if Trump follows through on firing Powell, the move could end the independence of the Fed and send stocks into a tailspin.

Second, on Monday night, China issued an official warning against any countries striking deals with the U. S. at its expense. The warning came in response to a Bloomberg report that the Trump administration planned to pressure other nations to cut down on trade with China and negotiate their tariff exemptions with the U.S.

In response, China’s Commerce Ministry said in a statement that it would “take countermeasures resolutely and reciprocally.” Currently, the Trump administration has levied a whopping 145% tariff on Chinese imports, leading China to enforce 125% duties on U. S. goods.

For most tech companies, strained trade relations with China have major ripple effects across operations. Most Apple products, for example, are manufactured in China, while many products sold on Amazon are made there, and Nvidia chips are manufactured in Taiwan. Likewise, Tesla relies heavily on parts made in China.