Wall Street’s biggest tech names took a hit in after-hours trading on Wednesday after President Donald Trump announced sweeping new trade tariffs. The “Magnificent Seven” stocks all declined, with Apple leading the losses—down 6.7%, followed by Tesla at 6% and Amazon at 5.5%. Even market favorite Nvidia slid 4.4%, as investors digested the impact of the surprise announcement.
Universal tariffs spark market sell-off
Trump introduced a 10% universal tariff on all U.S. imports, alongside a set of reciprocal tariffs targeting countries that impose high duties on American goods. China, Japan, South Korea, and Taiwan were among the hardest hit—nations deeply embedded in the global tech supply chain. The move sparked concerns about higher costs, strained global trade, and potential retaliation from key trading partners.
Apple and Tesla in the crosshairs
Apple faces the most direct risk, given its heavy reliance on Chinese and East Asian suppliers. Tariffs on key partners could disrupt production and drive up costs. Meanwhile, Tesla could feel the heat from retaliation, with foreign sales and Chinese-sourced components both under threat. CEO Elon Musk had already warned that the tariffs could significantly impact operations.
Recession fears resurface
Analysts say the new tariffs are far more aggressive than markets expected and could fuel inflation, disrupt trade, and increase the risk of a global recession. U.S. futures dropped sharply alongside tech stocks, reflecting broad-based investor anxiety. While some sectors like energy, gold, and pharmaceuticals were granted exemptions, the overall impact on the economy could be severe once the tariffs kick in next week.
Add a Comment