U.S. Tech Giants Lose $2 Trillion Amid Trump’s Escalating Trade War
The “Magnificent Seven,” a group of leading U.S. technology companies, suffered a massive selloff on Monday, wiping out approximately $2 trillion in market value. President Donald Trump’s intensifying trade war with countries like China triggered the dramatic decline.
These Are the Magnificent Seven
The elite group includes Apple, Tesla, Microsoft, Alphabet (Google), Amazon, Meta, and Nvidia. Investors consider these companies the powerhouses of the U.S. stock market due to their massive market capitalization and growth potential.
Tech Stocks Extend $6 Trillion Decline
Tesla led the decline, plunging 7% to $223. Apple dropped 4.8%, hitting a one-year low, while Alphabet and Microsoft also hovered near their lowest levels in a year. Amazon, Meta, and Nvidia also slid between 1.5% and 4.8%. The combined losses added to the $6 trillion the tech giants have already shed since peaking in late 2024.
The tech sector’s collapse contributed significantly to the S&P 500’s $5 trillion dip over the last two trading sessions.
Analysts Warn of Mounting Trade Pressure
Dan Ives, an analyst at Wedbush Securities, warned that Apple faces the most risk from the U.S.-China trade dispute because most iPhones are assembled in China. Ives also explained that Tesla faces increasing challenges due to its CEO Elon Musk’s vocal support for Trump and far-right political movements in Europe.
He emphasized that the tariffs could crush profit margins and disrupt already strained supply chains, especially as tech companies ramp up investments in artificial intelligence.
Trump Stands Firm on Tariff Plan
President Trump refused to back down from his aggressive trade stance. During a meeting with Israeli Prime Minister Benjamin Netanyahu in the Oval Office, Trump stated that tariffs serve as a cornerstone of his economic agenda. He declared, “We’re not looking at that,” when asked if he might withdraw them.
He affirmed that permanent tariffs could stay in place while keeping the door open for “fair deals and good deals with every country.”
Trump also threatened to slap a 50% tariff on U.S. imports from China starting Wednesday if Beijing doesn’t remove the 34% tariffs it imposed on American goods last week. Trump’s duties matched China’s with a 34% rate and labeled them “reciprocal.”
He took to social media, declaring, “All talks with China concerning their requested meetings with us will be terminated!”
Europe Hits Back with Counter-Tariffs
The European Commission responded by proposing 25% tariffs on a list of U.S. exports, including soybeans, nuts, and sausages. However, the list excluded some iconic American products like bourbon whiskey.
Investors Brace for Continued Volatility
The ongoing trade disputes have rattled markets and eroded confidence in tech stocks. Analysts warn that more volatility could follow if the trade war intensifies. As tech giants bear the brunt of economic retaliation, investors and economists alike continue to assess the long-term impact of protectionist policies on global growth.
