The stock of technology companies sharply lost value on Thursday after US president Donald Trump announced a broad introduction of fresh import duties, causing panic in global financial markets and fears of trade war – informs CNBC.
Major loss Apple noted that its shares lost almost 9% – this is the worst one-day consequence since 2020. Apple’s production is mostly concentrated in China and another Asian countries, making the company peculiarly susceptible to expanding tension in commercial relations.
Meta and Amazon's shares fell by over 7% while NVIDIA and Tesla lost more than 5%. Microsoft and Alphabet have fallen by about 2%. NVIDIA, which produces chips in Taiwan and assembles its artificial intelligence systems in Mexico, was besides under force from fresh duties.
Significant declines besides affected semiconductor manufacturers: Marvell Technology, Arm Holdings and Micron Technology lost over 8%. Broadcom and Lam investigation decreased by 6% and AMD – by over 4%. Stocks of software companies specified as ServiceNow and Fortinet have fallen by more than 5%.
These violent declines occurred after Wednesday announcement Trump introduces an overall 10% work rate on all imported goods as well as increased tariffs for country-specific products. The president called this step the “ Declaration of economical Independence” of the United States. The fresh duties include, among others, 34% for imports from China (in addition to the already existing 20%), 46% for goods from Vietnam and 20% for products from the European Union.
The Chinese Ministry of Commerce called on the US to "immediately withdraw" unilateral tariff measures and announced "strong retaliatory measures".
The fresh tariffs have emerged against the background of a hard 4th for the Nasdaq Index, which has already recorded the worst results since 2022. Stock markets are under force due to concerns about slowing the US economy. The Nasdaq Composite Index dropped by almost 5% on Thursday, and since the beginning of the year its decline is already 13%.
In his speech Trump tried to calm the markets, thanking respective large technology companies for investing in the American economy. In particular, he mentioned Apple's promise to invest $500 billion in the US over the next 4 years, setting the company as an example of business return to the country.
However, markets seem to have remained skeptical. fast stock drops show how powerfully American technology companies are linked to global supply chains, making them peculiarly delicate to geopolitical shocks.
