Apple's stock has suffered its biggest drop in five years, plummeting 9% on Thursday morning, following President Donald Trump's announcement of new tariffs on imports from countries like China and Vietnam. The tech giant's shares are expected to experience their largest decline since 2020 if the trend continues until the market close.

The tariffs, set to take effect on April 9th, will impose a 54% duty on Chinese imports and a 46% duty on Vietnamese imports, significantly impacting Apple's supply chain. As a result, the company may be forced to increase prices on its products, including Macs, iPhones, and iPads, or absorb the additional costs, potentially leading to slimmer profit margins. Apple's gross margin, which typically hovers around 38%, could take a hit, sparking concerns among investors.

Apple is not the only tech giant feeling the heat. Amazon shares also took a 7% dive on Thursday morning, while shares of Nvidia and Tesla dropped more than 4% each. Meta shares were also down about 7%. The broader tech industry is bracing for the potential impact of these tariffs, which could lead to increased prices for consumers or reduced profit margins for companies.

The tariffs are likely to have far-reaching implications for the tech industry, which relies heavily on global supply chains. Companies like Apple, Amazon, and others may need to reassess their manufacturing strategies and consider alternative production locations to mitigate the effects of the tariffs. This could lead to a significant shift in the global tech landscape, with companies scrambling to adapt to the new trade landscape.

Industry experts are closely watching the situation, anticipating potential ripple effects on consumer behavior and demand. If companies like Apple are forced to increase prices, it could lead to reduced sales and a slowdown in the tech sector. On the other hand, if companies choose to absorb the costs, it could result in reduced profit margins and a potential decline in investment.

As the situation continues to unfold, investors and industry watchers will be closely monitoring the impact of Trump's tariffs on the tech sector. With the global economy already facing uncertainty, the effects of these tariffs could have far-reaching consequences for the tech industry and beyond.