The upcoming tariffs, expected to take effect within days, will apply a standard 10% duty to all nations, with even steeper rates targeting several Asian economies that play a crucial role in the supply chains of U.S. corporations.

China faces a reciprocal 34% tariff, Trump said, on top of a 20% tariff he has already imposed. Taiwan will be hit with a 32% reciprocal tariff, although semiconductors are currently excluded.

The tech sector “will clearly be under major pressure on this announcement [over] worries about demand destruction, supply chains and especially the China and Taiwan piece of the tariffs”, Financial Times quoted Wedbush analyst Daniel Ives as saying.

Apple produces most of its iPhones in China, and Nvidia and other chip companies have “significant exposure” to China and Taiwan supply chains, the Hill quoted analysts as saying.

Apple manufactures most of its iPhones in China and ships around 50 million units to the U.S. annually. The iPhone, which accounts for over half of Apple’s total revenue, remains its core product, with the rest coming from Macs, iPads, wearables, and a growing services division.

Following the tariff announcement, Apple shares closed down 9.3% on Thursday, hitting their worst day since March 2020, according to Reuters. Meanwhile, Nvidia shares fell 7.8%.