US Tariffs Cause Major Losses for Tech Giants: Apple, Tesla, Meta, and Amazon Hit Hard
The announcement by President Donald Trump about new tariffs has triggered a wave of sales in the tech sector, severely affecting the stock prices of major companies like Apple and Amazon.
The decision, made on Wednesday, April 2, 2025, shook financial markets, raising concerns about the potential impact on the global economy and companies that rely on international supply chains.
Stock Drops for Major Tech Companies
The market response was swift: Apple’s stock fell by about 9%, marking its largest drop in the last five years. Amazon also saw a decrease of around 7%. Both companies, heavily reliant on imports from countries like China, now face the reality of high tariffs, with a 54% tariff on products from China and a 46% tariff on products from Vietnam, starting April 9, 2025. These tariffs could lead to higher prices for electronic products for consumers or lower profit margins for companies like Apple and Amazon if they decide to absorb the additional costs. Historically, Apple has maintained a gross margin around 38%, although this has occasionally been higher. Wall Street’s concern is that if Apple raises prices on products like the Mac, iPhone, and iPad, demand might drop.
Broader Impact on the Tech Sector
The tariffs have also affected other major tech companies. NVIDIA’s stock dropped by over 4%, while Tesla’s stock saw a similar decline, erasing much of the previous day’s gains. Meta experienced a 7% drop in its stock as well.
The fallout from these tariffs is just beginning, and it remains to be seen how companies will adjust to the new trade policies.
