President Trump of the United States levied a 104% tariff on Chinese imports, sparking global market turmoil: U.S. stock markets declined, Apple shares plummeted, and Asian stock markets slipped into a bear market.

On April 9, 2025, President Trump of the United States levied a 104% tariff on Chinese products, further escalating the U.S.-China trade war and leading to global market upheaval. U.S. stocks fell for four straight days, as the S&P 500 index fell below 5,000 points, with Apple's stock price experiencing a cumulative 23% drop. Asian markets were also impacted, with the Kospi index in South Korea entering a bear market and the Nikkei 225 index in Japan plunging more than 1,100 points. The global supply chain faced pressure to restructure, leading companies to adjust their production and logistics strategies. The expansion of production capacity for China's C919 aircraft became a focal point as an alternative in the aviation industry.

Trump's Tariff Policy Officially Takes Effect: Chinese Goods Tariff Reaches 104%

The White House officially imposed a total tariff of 104% on Chinese imports, effective from 12:01 AM on April 9. This measure is a further response by the Trump administration after China imposed a 34% retaliatory tariff on U.S. goods. Trump stated on Truth Social that if China does not withdraw its retaliatory tariffs, the U.S. will cease negotiations and turn to trade agreements with other countries.

U.S. Trade Representative Greer emphasized at a congressional hearing that no exemptions or exceptions will be granted in the near future, calling these tariffs a "necessary pain" to encourage the return of manufacturing to the U.S.

U.S. Stocks Fall for Four Consecutive Days, Market Value Evaporates by Over $5.8 Trillion

Trump's tariff policy has triggered a strong reaction on Wall Street. The S&P 500 index closed down 1.6% on April 9, at 4,982.77 points, falling below 5,000 points for the first time in a year and nearing a technical bear market (down nearly 19% from its peak). The Dow Jones Industrial Average fell 320 points (0.8%), and the Nasdaq index plunged 2.2%.

Since Trump first announced the tariff measures on April 2, the market value of S&P 500 components has evaporated by over $5.8 trillion, marking the largest four-day loss since the 1950s. Tech stocks were hit hardest, with the Philadelphia Semiconductor Index plummeting 3.6%, Intel down 7.4%, and TSMC ADR down 3.3%.

Apple Stock Takes a Nosedive, Cumulative Four-Day Decline Reaches 23%

Apple Inc. has become one of the hardest-hit companies in this trade war. Due to its heavy reliance on Chinese manufacturing for products like the iPhone, the market is concerned about a significant increase in its costs. Apple's stock fell 4.98% on April 9, closing at $172.42, marking the fourth consecutive trading day of decline, with a cumulative four-day decline of 23% and a market value loss of over $637 billion.

Analysts point out that if Apple chooses to absorb the tariff costs itself, it will put significant pressure on its profit margins. UBS estimates that the price of the highest-end iPhone model could rise by about 30% to $1,549. Wedbush analysts warn that if production shifts to the U.S., the iPhone price could reach as high as $3,500.

Asian Stock Markets Tumble: Kospi Enters Bear Market, Nikkei Plummets Over 1,000 Points

Asian markets have also been impacted. South Korea's Kospi index has fallen more than 20% from its high last July, officially entering a bear market. On the morning of April 9, the Kospi fell over 1%, with SK Hynix down more than 3% and Samsung Biologics down 0.9%.

Japan's Nikkei 225 index plummeted 1,144 points (3.47%) after opening, to 31,868.47 points, and the TOPIX index fell 2.93%. There is widespread concern that Trump's "reciprocal tariff" policy will put long-term pressure on export-oriented economies.

Global Supply Chain Overhaul: Companies Adjust Production and Logistics Strategies

The Trump administration's tariffs cover a wide range, not only targeting China but also including Vietnam (46%), Taiwan (32%), India (26%), and several other Asian countries. This makes it difficult for companies to shift production through a "China+1" strategy, forcing a more profound restructuring of global supply chains.

According to The Globe and Mail, Jaguar Land Rover and Audi have suspended vehicle exports to the U.S., and Stellantis has closed factories in Canada and Mexico. Supply chain consultants note that companies are reevaluating inventory management and capacity allocation to reduce costs and risks.

China's C919 Aircraft Production Ramps Up, Becomes an Alternative Option

In the aviation sector, China's COMAC C919 aircraft is gradually becoming an alternative to Boeing and Airbus. In 2024, COMAC has already delivered 12 C919s to the three major state-owned airlines and plans to expand production to 30 aircraft per year by 2025, with a total assembly capacity of 50 aircraft.

With the U.S. imposing tariffs on Chinese aircraft parts, Chinese airlines may reduce Boeing purchases and turn to the C919 or Airbus. The European Union Aviation Safety Agency (EASA) has begun on-site inspections of the C919 and is expected to complete EU certification by 2025. The CEO of Europe's largest low-cost airline, Ryanair, also stated that if the price is competitive, they will consider purchasing the C919.

References

• 川普不會屈服：對華104%稅率將正式生效(圖) - 時事 -
• Apple stock drops 5% after Trump administration confirms China tariffs to reach 104%
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• Trump’s tariffs are already rerouting global supply chains
• 關稅推高飛機引進成本 中國國產飛機的機會來了？ | Anue鉅亨 - 國際政經