Shares in the highest US companies including Apple, Amazon and Tesla crashed into the trading Wednesday, while Donald Trump’s comprehensive tariff regime threatened a widespread turmoil for global supply chains.
Technology companies were among the most difficult in the initial market response, with contracts that follow nasdaq below 4 percent. Apple, which is highly exposed to additional tariffs in China, without its shares falling 7 percent, with Amazon down about 6 percent.
The scaling of Trump’s global trade war poses a significant risk to technology supply chains, as senior executives spent months trusting the President in an attempt to mitigate or gain exceptions from policies that could hit them at the end.
Technology companies were not the only ones suffering late Wednesday. Shares in large retailers and customer brands also gathered after the Trump fee announcement, with Walmart falling 7 percent. Target fell more than 5 percent and the group of Nike sportswear was out of 7 percent in the post -time trade.
A universal fee of 10 percent in all countries will be implemented by East midnight on April 5, while the highest “reciprocal” tariffs, which apply to numerous geography, including the EU, China, the United Kingdom, Japan and South Korea, have settled in force from East at midnight on April 9.
Wedbush Daniel Iva analyst wrote that entertaining new tariffs was the scenario “worse than the worst case” they were afraid of markets. “Technology shares will be clearly under high pressure on this notice (on) concerns for the destruction of demand, supply chains and especially the part of China and Taiwan tariffs.”
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An executive at a large technology company said to operate under current administration was like “trying to hit a moving target”. “I am more concerned that he will break the American economy” than any tariff group, the person said.
Apple refused to comment on whether there was any prospect for her to secure a new fee engraving after managing Trump’s first term. A White House spokesman confirmed that there were no exceptions to Apple in the president’s executive order.
Tim Cook, Apple’s chief executive, is walking with a geopolitical constriction, with the company’s supply chains strongly connected to China, where Foxcon’s likes pump millions of iPhones each year. A $ 500 billion in February was seen as an attempt to make the Trump table.
Apple sends approximately 50MN iPhone in the US every year, with the vast majority made in China. The iPhone remains the company’s flag product and makes up more than half of its total revenue, with MAC, IPAD, clothing clothing and fast -growing services that make up the rest.
Trump announced it would impose a “reciprocal” fee 34 percent on Chinese imports – at the top of a 20 percent fee that it has already imposed – as well as 26 percent in India and 46 percent in Vietnam, where Apple also produces.
The one -sided movement affecting numerous essential production sites would not only affect the close relationships of the Apple’s supply chain with China, but would also benefit from any benefit from its efforts to diversify its productive basis elsewhere.
Amazon is similarly engaged in a recent campaign for Woo Trump after facing the president’s Ire during his first term. Company founder Jeff Bezos attended Trump’s oath ceremony and has dinner with him several times in recent months.
Seattle -based conglomerate depends on Chinese imports to reserve its warehouses, and about a quarter of retail wing costs are related to China, according to Morgan Stanley analysts.
Nvidia shares, meanwhile, poured more than 5 percent after hours, despite the White House explaining that the semiconductors would be excluded from the reciprocal regime for now.
Chip giant relies on Taiwan’s semiconductor CO to produce his artificial intelligence chips, whose sales have pushed the company into high ratings in the last two years.
Nvidia, whose chief executive Jensen Huang similarly promised hundreds of billions of dollars in spending at the SH.BA over the next four years in an interview with the Financial Times last month, refused to comment.
TSMC shares decreased about 6 percent in the post -time trade. The company recently committed to investing an additional $ 100bn in the production of US chips.
Meta shares, meanwhile, were down about 5 percent. Previously warned that her revenue for advertising in China could be hit in the event of an escalating trade dispute with the US
Trump also confirmed that 25 percent fees will be set for all cars and parts made alien at midnight, hitting the reserves of all US car manufacturers.
Shares in Tesla dropped 8 percent in post -time trading while investors worried about the impact on its global supply chain, as well as the perspective of revenge tariffs in the world’s largest electric vehicle manufacturer.
Last month Tesla warned that the cost of making cars will increase because “certain parts and ingredients are difficult or impossible to stem inside the US” and US vehicles will become less competitive abroad.
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A White House Fact Sheet said that cars and car parts “already subject to tariffs”, copper and “certain minerals not available in the US” would be excluded, without giving more details.
Daniel Newman, chief executive of the Futurum group, described Trump’s movement as a “RIP The Band-Aid-Off” for technology investors that have been on for weeks.
“You’re looking at the market to react and you are going: the whole world has essentially become fully dependent on us who have this very accessible economy,” he said.
For retailers, stock movements came despite years of efforts to diversify their supply chains after Trump imposed large fees for imports from China in its first mandate. Suppliers in the Home Depot, the largest home improvement chain, transferred some products to South East Asia, Mexico and SH.BA, said Chief Executive Ted Deker last month.
Target has shifted the production of clothing from China and increasingly to Central American countries such as Guatemala and Honduras, trade chief Rick Gomez said last month. Trump hit Guatemala and Honduras with 10 percent fee tariffs on Wednesday.
The goal refused to comment.
“These newly announced tariffs-and the expected retaliation tariffs for American businesses-raise to destabilize the American economy, undermining the goals of strengthening and growing internal production,” said Michael Hanson, a senior executive vice president at the retail industry association, which counts as a member.
New fees aroused an immediate push for special relief. The Consumer Brand Association, whose members include Pepsico, Mondelez and Kraft Heinz food producers, sought to exclude some “critical ingredients” from taxes.
“We encourage President Trump and his trade advisers to regulate their access and exclude the main ingredients and inputs in order to protect production work and prevent unnecessary inflation in the grocery store,” the association said.
Additional reporting from Rafe Uddin, Hannah Murphy and Alex Rogers
