Plus Amazon and some other tech companies’ shares rebound after a chaotic day on Wall Street. And Chinese tech stocks take fright at Trump’s trade war. Victoria Craig hosts.
Learn more about your ad choices. Visit megaphone.fm/adchoices
[00:00:01] Here's your TNB Tech Minute for Monday, April 7. I'm Victoria Craig for The Wall Street Journal. President Trump's tariffs on China are forcing Apple to think quickly about short-term adjustments to its supply chain. People familiar with the matter told the journal that Apple will send more of its iPhones to the U.S. from India, cutting back on shipments from China where its production has been historically centered.
[00:00:23] The president's tariff package raises levies on Chinese goods to at least 54 percent, while India's rise to 26 percent. The tariffs on China could add roughly $300 to the $550 it currently costs to make an iPhone 16 Pro. Those calculations are before any additional tariffs President Trump has threatened on China if it does not rescind its reciprocal measures on the U.S.
[00:00:48] Apple shares have plunged nearly 20 percent in the past three days over concerns about its supply chain exposure to those tariffs. But some of its peers in the so-called Magnificent Seven group of stocks, including Amazon, Alphabet and NVIDIA, got a boost in today's whipsaw trading session on Wall Street. Amazon rallied more than 2 percent, reversing some of last week's declines. One investment bank released new estimates showing the online retailer's tariffs exposure could be less than some of its big tech peers.
[00:01:17] That's due to Americans' reliance on online shopping and the willingness of sellers on the platform to continue advertising. Meanwhile in Hong Kong, the tech-sensitive Hang Seng Index reacted to Friday's sell-off on Wall Street. It plunged more than 13 percent today. Among the decliners were BYD Electronic, a major Apple supplier, and Lenovo Group, which is the world's biggest maker of personal computers.
[00:01:41] Tencent and Alibaba also dropped double digits on worries that wider economic challenges could hurt their more domestically focused businesses. In China, Apple suppliers, Foxconn, and Luxshare Precision Industry fell by 10 percent, hitting the maximum daily limit. For a deeper dive into what's happening in tech and the ongoing fallout of President Trump's tariffs, check out Tuesday's Tech News Briefing podcast. One, two, three, two, four, five, five, four, five, six, five, six, five, six, six, six, five, six, seven, eight, five, seven, seven, eight, ten, ten, six, seven, eight, seven, eight. The last, nine, eight, seven, nine, one, eight, eight, ten, seven, seven, eight.