- Apple and Amazon stocks plunged after Trump’s steep new tariffs on China and Vietnam imports.
- Tech giants like Nvidia, Meta, and Tesla also saw sharp drops as investors reacted to trade war fears.
- Rising import costs could force companies to raise prices or absorb losses, hitting profits and demand.
Tech stocks took a serious hit Thursday morning as Wall Street woke up to the fallout from Trump’s surprise tariff bombshell the night before.
Apple and Amazon Lead the Slide
Apple shares tumbled nearly 9% out of the gate—yep, that’s their biggest single-day drop in close to five years, if it holds. Amazon didn’t fare much better, down roughly 7% early on, according to CNBC. Oof.
What’s Causing the Drop?
Trump’s latest round of tariffs. Starting April 9th, imports from China will face a steep 54% duty. Products from Vietnam? Try 46%. That’s bad news for companies like Apple and Amazon, both of which rely heavily on overseas manufacturing to keep things humming.
Consumers or Companies—Who Takes the Hit?
If those tariffs stick, consumers could be staring down higher price tags for phones, laptops, headphones—you name it. Or companies might decide to eat the cost themselves, which would mean thinner profits. Either way, someone’s paying.
Margins Under Pressure
Apple usually runs at about a 38% gross margin (basically, what they pocket after selling a product), but rising costs could put a dent in that. And if they try passing those hikes to customers? Demand could dip. Hard to say yet, but Wall Street’s clearly on edge.
The Rest of Tech’s Not Safe Either
Other tech giants felt the pain too—Nvidia dropped over 4%, and Tesla gave up most of its recent gains, also falling 4%. Meta (formerly Facebook) sank about 7% as well.
Bottom Line
So yeah, it’s been a rough morning in tech land. And unless there’s a quick policy walk-back (which, let’s be honest, isn’t impossible), markets may stay jittery.
