Trump to appeal tariff ruling, warns of economic consequences
Investing.com -- Shares of the major tech giants, collectively known as the Mag 7, fell sharply in after-hours trading after President Trump announced a new series of reciprocal tariffs. The move has sparked concerns over increased costs for companies and consumers, leading to a sell-off in the stock market.
Apple stock (NASDAQ: NASDAQ:AAPL) led the declines with a 4.7% drop, followed closely by Tesla (NASDAQ: NASDAQ:TSLA), which fell by 4.8%. Amazon (NASDAQ: NASDAQ:AMZN) and Meta Platforms (NASDAQ: NASDAQ:META) also saw significant losses of 4% and 3.4%, respectively. Alphabet (NASDAQ: NASDAQ:GOOGL), Microsoft (NASDAQ: NASDAQ:MSFT), and NVIDIA (NASDAQ: NASDAQ:NVDA) weren’t spared either, with their shares down 2.6%, 1.9%, and 3.3%.
The driver behind this market reaction is the announcement from President Trump detailing reciprocal tariffs that would match the rates imposed on American goods by other countries. The new rates are set to be half of the existing tariffs imposed by these nations on U.S. products. According to the announcement, China will face a reciprocal rate of 34%, the European Union 20%, Vietnam 46%, Taiwan 32%, Japan 24%, and India 26%, among others.
Investors are concerned that these tariffs will lead to higher production costs and disrupt global supply chains, which could ultimately hurt profitability and slow down economic growth. The tech sector, in particular, is sensitive to changes in trade policy due to its global supply chains and the international nature of its consumer markets.
The announcement has sent a wave of uncertainty through the markets, as traders and investors assess the potential impact of these tariffs on the global economy and on the bottom lines of major U.S. companies. The tech-heavy NASDAQ index, where all the Mag 7 companies are listed, is likely to be under close watch in the coming days as the situation develops.
As the market processes this news, investors will be keeping a keen eye on the responses from the affected countries and any further developments in international trade relations.
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