Apple Has Best Day Since 1998 on Trump’s 90-Day Tariff Pause

Apple stock just made history with a 15% jump – its biggest win since 1998. This is because of the 90-day pause on Trump’s tariffs. While this added $400 billion to Apple’s value overnight, there’s a problem too. China tariffs hit 125% and Apple still makes most iPhones there. So, the stock already dropped 4% after the big rise. Now the question is about the smart investment on Apple shares. Here’s what we know so far and should you invest in Apple for real growth.

Apple’s Biggest Stock Jump in 27 Years

Apple’s stock price saw its biggest single-day jump in 27 years on April 9, 2025. Since 1998, it was the best performance of Apple when the stock rose by 15% in just one day. Well, this sudden surge was due to Trump’s 90-day tariff pause. 

As a result, this tariff pause lowered import taxes on goods from many countries where Apple has been moving some of its production. So, this was good news for Apple as it means lower costs for making iPhones and other products.

The jump in Apple’s stock also helped the broader market. For example, the Nasdaq had its second-best day ever with the rise of stock by 12%. Other big tech companies e.g. Tesla and Nvidia also saw big gains. 

In fact, this rally was a sharp turnaround for Apple. This is because just days before, its stock had dropped nearly 25% in four days which was its worst slump in years because of fears over the new tariffs. But this 90-day pause gave investors hope yet along with some future uncertainties.

Why Was Apple Struggling Before the Big Rally?

Apple’s stock had been performing poorly before its sudden 15% jump on April 9, 2025. In fact, Apple faced its worst slump in years when its shares dropped nearly 25% in just four days. In this case, investors were worried and the market was uncertain. Then, the rally happened. But what led to Apple’s struggles in the first place? 

Here are the reasons behind apple’s stock decline before rally:

Tariff Troubles

The threat of new tariffs has always been a biggest problem. This time, the U.S. government imposed a 125% tariff on Chinese imports where Apple makes most of its iPhones. Apple also faced tariffs in India (26%) and Vietnam (46%) where it has been moving some production. As a result, these tariffs ended up making iPhones much more expensive and ultimately decreased sales.

Slow iPhone Sales & Weak AI Progress

Even before the tariff worries, Apple was dealing with declined iPhone demand. This is because the new models didn’t offer upgrades. Apple also fell behind in artificial intelligence (AI) as its Siri assistant lagging behind competitors. So, there were no major iPhone sales boosts in 2025. 

Dependence on China

Since about 80% of Apple’s products are made in China, it makes Apple vulnerable to trade wars. Moving production to India or Vietnam takes time, and even then, these countries couldn’t fully replace China’s manufacturing scale. But these are the tariffs on Chinese imports that added pressure on Apple.

Market-Wide Tech Selloff

Apple wasn’t alone in this decline as the entire tech sector was struggling. The “Magnificent Seven” tech giants (including Apple, Tesla, and Nvidia) lost $1.8 trillion in market value in just two days. This was the time when investors were pulling money out of tech stocks due to fears of slowing growth. 

But when the 90-day tariff pause was announced, Apple got temporary relief. Meanwhile, lower taxes on imports from India and Vietnam addressed cost concerns and so the stock rebounded sharply.

What Did Trump’s 90-Day Tariff Pause Change for Apple?

Apple was facing serious problems because of new tariffs on imported goods. These taxes made iPhones and other Apple products expensive to make and sell. However, the decision of Trump’s 90-day pause on some tariffs brought immediate changes for Apple as given below:

Lower Costs for Some Products

The pause reduced tariffs on goods from Vietnam and India. Specifically, Taxes on Vietnamese imports dropped from 46% to 10%. Similarly, Indian imports saw tariffs fall from 26% to 10%. Since Apple makes some iPhones and parts in these countries, it ultimately lowers down the production cost.

More Time to Adjust Supply Chains

Owing to the massive tariffs on Chinese goods, Apple was trying to move production out of China. So, the 90-day pause gave the company extra time to speed up this shift. From now on, factories in India and Vietnam could operate without sudden tax hikes.

Stock Market Relief

Investors were worried about declining Apple’s profits due to tariffs. However, the pause calmed these fears as soon as Apple’s stock jumped 15% the day after the announcement. Other tech stocks also gone up as confidence returned. 

As a matter of fact, the tariff pause helped Apple in some ways but didn’t fix all its problems. The company still faces tough decisions about where to make its products and how to keep prices stable.

How the Stock Market Reacted?

The stock market went wild in response to Trump’s 90-day pause on some tariffs. At first, Apple’s stock price shot up 15% in a single day which was its biggest jump since 1998. In fact, this wasn’t just for Apple, the entire tech sector got a boost.

The Nasdaq got a boost of 12% which was its second-best day ever. Other big tech stocks e.g. Tesla and Nvidia also saw huge gains of over 15%. The market takes this as a sign that trade tensions are easing now easing, at least temporarily.

But the excitement didn’t last very long. The next day, Apple’s stock dropped about 4% as investors started thinking more carefully. Though the tariff pause helped with products from Vietnam and India, the higher taxes on Chinese goods remained a big problem. Since Apple still makes most of its products in China, people began worrying again about future costs.

Now, the market became uncertain about what would happen after the 90-day pause.

Why Tariffs Matter for Apple?

Apple makes most of its products in China. When the U.S. government puts tariffs on Chinese goods, it becomes more expensive for Apple to make iPhones, iPads, and MacBooks. 

If Apple has to pay extra for making its products, it has two choices: 

Raise prices: If Apple charges more for iPhones, people will buy fewer of them. 

Absorb the cost: Apple could pay the extra taxes itself, but that would hurt its profits. 

That’s why Apple is trying to move some production out of China to India and Vietnam. These countries have lower taxes but moving factories takes time and money. 

Tariffs make business harder for Apple. This is because higher costs mean less profit which makes Apple’s stock price go down. That’s why investors watch trade policies closely. 

The next day, why did Apple’s stock drop again?

The next day, Apple’s stock dropped again because investors realized the tariff relief was temporary. The Trump administration made it further clear that the exemptions for iPhones and other electronics would last just 90 days. After that, new tariffs will apply which will bring back higher costs for Apple. 

Another reason was uncertainty. The market had initially celebrated the tariff pause but traders soon worried about what would happen next. If tariffs returned, Apple either had to raise iPhone prices or absorb higher costs, reducing profits in both cases.

China’s response also played a role in this regard. For example, Beijing imposed an 84% tariff on U.S. goods which would definitely hurt Apple’s sales in China, its third-biggest market. So, the investors feared that fewer people would buy iPhones if prices went up. 

Finally, some analysts also warned that Apple’s growth was already slowing. Even without tariffs, iPhone sales had been flat for years. Overall, the stock had surged too fast the day before, so a small pullback was expected. 

Should You Invest in Apple after this?

Investing in Apple after this tariff news is somewhat a risky decision. This is because the stock recently jumped 15% in one day after Trump paused some tariffs for 90 days, but it also dropped later when China increased its own tariffs. This shows that Apple’s stock is sensitive to trade policies.

Apple still makes most of its products in China which are now facing a 125% U.S. tariff. If these tariffs will stay, Apple will have to raise iPhone prices by 13-21% to keep profits stable. In turn, this would hurt sales especially in China where Apple already faces an 84% tariff on its products. 

However, Apple is moving some production to India and Vietnam where tariffs are lower (10%). If this shift speeds up, Apple would avoid some of the tariff damage.

Overall, short-term traders have opportunities in Apple’s stock swings. But long-term investors should watch two things: whether tariffs become permanent and how fast Apple can reduce its reliance on China. If trade tensions ease, Apple’s stock could recover. If not, prices may keep bouncing up and down. 

However, Apple is still a strong company, but it’s the trade wars that add risk. So, if you believe Apple can adapt quickly, it might be a good investment for you. If you think tariffs will last, waiting could be safer.

Final Words

In short, Apple stock surge reflects temporary relief from tariffs, not permanent solutions. The 15% gain came from reduced tariffs on Vietnam and India production. However, the 125% China tariffs create ongoing risks for iPhone costs and availability. To overcome this, production shifts to other countries are progressing but remain incomplete. So, investors should weigh Apple’s strong fundamentals against these persistent tariff pressures when making decisions.