Trump’s Tarifs Hammer Big Tech as Apple, Meta, Amazon Shares Plunge
Us President Donald Trump Announced on Tuesday a Host of New Tariffs that Sent the Stock Pries of Numerous Tech Giants Plumming. He applied individual “reciprocal” tariffs to several nations, equipped to half of its trade deficit with the us, and a baseline 10% levy on all imports.
- Goods from Vietnam are now subject to a 46% reciprocal tariff
- 32% on imports from taiwan
- 26% from India
Additionally, China faces a 34% reciprocal tariff, which is on top of the 20% tarif that has been done in Effect Since March.
Byhursday’s Close, Nvidia’s Stock Had Fallen By Nearly 8% as a Result of the tariffs announs, while amazon and meta Dropped by 9% Each, According to CNBCApple Led the declines, tumbling 9%-Its steepest Drop Since the Covid-Induced Market Sell-off in March 2020.
Shares of Microsoft and Alphabet Both Fell About 2% and 4%, Respatively. The Nasdaq Composite Index, a Benchmark Heavily Weighted Toward Tech Stocks, Dropped By Almost 6%. This is all due to fears that their operational costs will risk and that supply chains, which relay heavily on overseas manufacturing and importants, will be disrupted.
Much of the so-called “Magnificent Seven”-Apple, Microsoft, Alphabet, Tesla, Nvidia, Meta, And Amazon-Took Another Hit DURING FRIDAYI PADAN, AFTER CHINA PHE RETALIATED With a 34% tariff on important from the USBoth Nvidia and Apple Dropped 7%, According To Yahoo financeWhile shares in meta sank by more than 5%. And CNBC Reported on Friday that “Magnificent Seven” Lost a Combined $ 1.8 Trillion in Market Value Over the Past Two Days.
As of today, cryptocurrency prices in Particular areeing a significant negative impact.
Company-Level Impact: Apple and Nvidia
Apple Products – Primarily Manufactured in China, India, and Vietnam – are likely to become more expensive as the company passes incredible important important costs on to us consumers. Morgan Stanley Analysts Estimate that Apple’s Profits Could A 7% Hit in 2026 Due to Its Annual Costs Rising By $ 8.5 Billion.
Us chipmaker giant nvidia should be somewhat shielded from the impact due to Trump’s exemption on semiconductorsSparing it from the 32% tariff on chips manufactured in taiwan by tsmc. However, it remains unclear whether the semiconductor exemption will also cover the 10% baseline tariff on all importants, and rumor has it New tariffs on chips are coming soon,
Tarifs Block ‘Disrupt Ai Innovation’
The Us relaes on China and Taiwan For approximately 80% of its foundry capacity for 20 to 45nm chips and about 70% for 50 to 180nm chips. Tech Firms May Attempt to Shift Sourcing to Reciprocal Tariff-Free Countries, but many will pass the additional costs to consumers instead.
Separately, Trump has revised tariff exemptions on Chinese imports valied at $ 800 Or less. This is particularly bad news for amazon as many of the low-price Goods Listed on its marketplace are from chinese sellers.
Analysts are concerned about potential retaliatory action from China, as the country’s Ministry of Commerce Said it would “resolutely take countermeasures” if the us does not “immediatily cancel” its tarifs. Dan iVes of Wedbush Securities said in a note that tariffs from China could “Constrick the supply chain for next-generation nvidia chips/hardware,” DISRUPTING AI Innovation
