Shares of the “Magnificent 7” - Apple, Microsoft, Amazon, Alphabet, Meta Platforms, Nvidia, and Tesla - fell sharply following US President Donald Trump’s sweeping tariff announcement.
Apple Inc (NASDAQ:AAPL, ETR:APC) took the hardest hit, down 8.8% at $204, as its reliance on Chinese and Southeast Asian manufacturing puts it at direct risk. With tariffs on Chinese imports set at 54% and Vietnam at 46%, Apple’s production costs will rise sharply.
As a major importer of goods, Amazon.com Inc (NASDAQ:AMZN) faces increased costs both for its own retail operations and for third-party sellers who rely on Chinese suppliers. Tariffs on consumer goods could drive up prices, dampening demand, while additional logistics expenses could eat into Amazon’s margins. Shares of Amazon fell 8.2% to about $180.
Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB)'s stock fell 7.2% to about $542 on concerns over rising costs for virtual reality and AI infrastructure. Many of Meta’s hardware components for devices like the Oculus headset are sourced from China and Vietnam, where tariffs will make production significantly more expensive.
Nvidia Corp (NASDAQ:NVDA, ETR:NVD)'s dependence on Taiwan and China for semiconductor supply chains saw it shed 6.5% at $103. Although some chips are temporarily exempt from tariffs, other critical components, including memory chips and AI servers, are impacted.
Tesla Inc (NASDAQ:TSLA)'s Shanghai Gigafactory, a key export hub, is now subject to a 54% tariff on Chinese-made electric vehicles. Additionally, the company relies on Chinese-sourced battery materials. Shares of the electric vehicle maker were down 6.2% at $265.
Core businesses unaffected
Shares of Alphabet Inc (NASDAQ:GOOG), Google's parent company, fell a more modest 3.3% to $154 due to its diversified business model. Its core businesses, advertising and cloud services, are less impacted by the tariffs however its hardware division, including Pixel phones and Nest smart home products, will face higher costs due to increased tariffs on key components from China.
Microsoft Corp (NASDAQ:MSFT) saw the smallest drop, down 2% at $374, as its core business in software and cloud computing is largely insulated from the tariffs. However, its Surface laptop and tablet line could see higher costs and supply chain disruptions could reduce availability.