Apple is currently breaking a key resistance level amidst uncertain conditions. Find out what could be the best strategy to play now. | Source: Drew Angerer / Getty Images / AFP
In September 2018, both countries have implemented the third round of tariffs where the U.S. imposed an additional $200 billion tariffs on Chinese goods. China retaliates by implementing tariffs worth $60 billion on U.S. merchandise.
At that point, Apple’s shares began to crumble. The stock went from an all-time high of $233.47 in October 2018 down to $142 in December 2018. That’s when both countries decided to halt escalations. Though looks like China has announced a further $75 billion of tariffs on U.S. products today.
Apple is vulnerable to the trade war because the Chinese market generates a substantial amount of revenue for the tech company. The bad economy in China due to the trade tensions have made a negative impact on Apple’s sales in the country. In the first quarter of 2019, the company generated $13 billion in revenue from the Asian giant, which is down 27 percent year-over-year.
Nevertheless, tensions have eased between the two countries. This allowed the tech titan to regain its footing.
Apple Mildly Bullish After It Broke Out of a Bullish Continuation Pattern
On Aug. 13, 2019, the Trump administration announced that it will delay the imposition of new tariffs on Chinese goods including cell phones.