US Tech and Retail Stocks Plunge as Trump’s Tariffs Trigger Global Market Panic

A sharp market sell-off was triggered after President Donald Trump announced sweeping new tariffs, which sent megacap U.S. tech and retail stocks into a downward spiral. Apple, Walmart, and Nike were among the hardest hit, as concerns grew over the potential impact on global supply chains and rising production costs. The tariffs, which include a 10% baseline tariff on all imports and additional duties on several countries, have raised fears that they could disrupt the global trade order and hamper U.S. business growth.

The tariffs mark a significant policy shift from earlier in the Trump administration, when expectations of business-friendly policies had led U.S. stocks to record highs. Economists and analysts warned that the new tariffs could harm U.S. growth by as much as 1-1.5 percentage points, potentially increasing recession risks. This concern led to a broad flight to safer assets, with Wall Street futures plummeting 3.5% and investors flocking to bonds, gold, and the Japanese yen for stability.

Tech companies, particularly those reliant on Asian manufacturing hubs like Apple, were hit especially hard. Apple’s stock fell by 7.4%, with analysts estimating that the company could face an additional $39.5 billion in tariff costs. This would lead to a significant hit to its operating profits, with a potential 32% reduction in earnings. The tech sector, already under pressure from volatile global trade, now faces mounting challenges from these new tariffs.

Further disruptions are expected in the tech hardware and semiconductor markets, which rely heavily on imports of electronics. Companies like Dell and HP saw their stock prices fall by 8.8% and 5%, respectively, as costs for products like PCs and AI servers were projected to rise between 10% and 25%. This could lead to higher prices for consumers, dampening demand in an already sluggish market

Source: Reuters