Tech Titans Tumble: $700 Billion Wiped as Trump's Tariffs Shake Wall Street
1min read In a dramatic turn of events following the announcement of U.S. President Donald Trump's "reciprocal tariffs," major U.S. tech stocks experienced significant declines in after-hours trading. The seven giants—Apple, tesla, amazon, nvidia, microsoft, Google, and Facebook—saw their market value plummet by over $700 billion. Notably, apple shares slid by 7.1%, Tesla by more than 8%, and Nvidia by nearly 6%.
Before the tariff announcement, hedge funds had already been retreating from these tech stocks at an unprecedented pace over the past six months, according to reports. This retreat was catalyzed by the looming tariff implementation, scheduled to take effect on April 2nd, which signified a stark shift in investor sentiment toward the tech sector.
The anticipated tariffs have cast a long shadow over U.S. tech multinationals that heavily rely on global sales. Despite these challenges, China remains a pivotal market for companies like Apple and Nvidia, underscoring the high stakes involved in these geopolitical maneuvers. The significance of this market is further evidenced by Nvidia's $171 billion revenue from China as reported for the fiscal year 2025.
Analysts highlight that Trump's policy not only raises concerns over accelerated inflation and potential economic slowdown but also risks further disrupting the already fragile supply chains. Despite these concerns and the recent six-month stock downturn, some argue that the fundamentals of leading tech firms remain robust, distinguishing them from the tech bubble of the early 2000s.
Nvidia's CEO, Jensen Huang, addressed the potential long-term shifts in the supply chain towards the U.S., partially prompted by the tariffs. Nvidia is also emphasizing local production, with its advanced Blackwell chips already in U.S. production. Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC), a key Nvidia partner, has launched its advanced chip production in the U.S., marking significant strategic industry shifts.
Nevertheless, as the tariffs loom, industry leaders continue to stress the importance of the Chinese market, including Tim Cook's acknowledgment of China's vital role in Apple's supply chain. The evolution of these strategic relationships will be crucial in navigating the complexities brought on by new tariffs and global economic challenges.
Ask Aime: What caused the significant decline in U.S. tech stocks after Trump's "reciprocal tariffs" announcement?
