Apple has lost its spot as the world’s most valuable company. Tariffs have decimated its market cap. That has allowed Microsoft to once again claim the top ranking, but only by a narrow margin.

As shares of Apple continue to slide following Donald Trump’s tariff announcements, the company has lost its bragging rights as being the world’s most valuable.

Apple’s market capitalization has dropped from $3.85 trillion last December to $2.65 trillion as of Wednesday morning. This follows a share price drop of roughly 20% since Trump announced the tariffs.

With the drop, Microsoft once again takes the top spot, though by the smallest of margins. That tech giant’s market cap currently stands at $2.67 trillion, well off its own high. Last July, the maker of Windows was worth $3.48 trillion.

Microsoft, which turned 50 last week, last held the title of world’s most valuable company in June.

The broad tariffs have played a big role in decimating that value, however. Apple is particularly vulnerable, owing to its reliance on physical goods, like the iPhone and AirPods. Microsoft has been spared the worst of the post-tariff drop off because it makes more from software and services.

That advantage might not last much longer, however. The European Union is threatening to post retaliatory tariffs on not just physical goods, but tech services as well—a move that would impact a suite of Big Tech companies. Microsoft would likely feel some pain, but so would Google, Apple, Amazon, and more.

Tariffs on services are allowed as part of what the EU calls the Anti-Coercion Instrument. Adopted in 2023, it was designed to defend the EU against a trade war with China, but now it’s being seen as a potential tool to battle Trump. Some EU officials refer to it as the “bazooka.”

Shares of both Apple and Microsoft were higher in early trading Wednesday.