Trump’s Tariff Plans Throw Tech Market Into Disarray
WASHINGTON — President Donald Trump’s tariff proposal Tuesday sent tech stocks tumbling throughout Wall Street. The new tariffs hit imports from key trading partners, including China and Europe. They are designed to bolster U.S. manufacturing but have stoked concern over higher prices and supply chain disruptions for the tech sector. Tariffs Shake Tech Giants It came attached to […]

WASHINGTON — President Donald Trump’s tariff proposal Tuesday sent tech stocks tumbling throughout Wall Street. The new tariffs hit imports from key trading partners, including China and Europe. They are designed to bolster U.S. manufacturing but have stoked concern over higher prices and supply chain disruptions for the tech sector.
Tariffs Shake Tech Giants
It came attached to a 10% baseline tariff on nearly all imports, and even higher rates, such as 34% on China and 20% on the European Union. Shares of tech giants like Apple, Amazon and Nvidia were sharply lower. Apple stock dropped 9 percent, wiping out $300 billion in market capitalization. The Nasdaq fell almost 6 percent, its worst day since March 2020. The tariffs were aimed at countries where tech companies produce components, such as Taiwan and Vietnam.
These levies come amid existing tensions. Tariffs on China under Trump’s first term pushed companies to relocate production to places such as India. Now those countries have new obligations, too. Vietnam, for instance, pays a 46% tariff, India a 26% tariff. That makes it difficult for companies to escape higher-costs. Soon, consumers may find themselves paying more for smartphones and laptops.
Why the Market Panicked
Tech is dependent on global supply chains. Apple produces iPhones in China and India. Taiwan is a source of chips for Nvidia. Tariffs increase the price of these components. They also face retaliation from trade partners. China already placed 125% tariffs on U.S. products. Europe is looking at taxes on U.S. tech services, including operating companies like Meta and Google.
The White House carved out semiconductors from some tariffs, but this does little to ease the pain. AI chips and data center gear remain subject to duties. Constructing new factories in the United States takes years, so companies cannot rapidly avoid costs imposed by imports. “Tariffs have a significant impact on our supply chain,” an Apple spokesperson said. “We are looking at how we can keep prices steady.”
Ripple Effects and Risks
Outside of stocks, tariffs imperil wider tech ambitions. Microsoft and Google and the like are constructing AI data centers. Rising costs for steel and hardware may delay these endeavors. A Reuters report cited delays in projects such as Stargate, a $500 billion AI data center initiative. It’s also about funding — and markets remain volatile.
Retailers are preparing for fallout as well. The Consumer Technology Association predicts laptop prices could jump by 68%. May be 37% costlier for smartphones. Major retailers including Target are already preparing to raise prices. This might limit consumer spending, a major engine of tech growth. If trade wars escalate, global tech innovation could come to a standstill.
What’s Next?
Trump Tariffs will return jobs to America He’s pressured companies such as Apple to establish U.S. factories. But analysts say a quick turnaround is unlikely. The administration will review its approach to tariffs after discussions with allies including Japan. For the time being, tech companies are lobbying for exemptions, like they did in 2018.
The next few weeks will be decisive. If tariffs remain, companies may pass along costs to consumers. Investors are looking for signals of compromise. Global tech battle could alter tech, heightening prices, slowing growth But some hope that the talks could help ease the strain, stabilizing markets.