US President Donald Trump announced a number of new rates on Tuesday that have dropped the share prices of numerous technical giants. He has applied individual ‘reciprocal’ rates to different countries, equivalent to half of its trade deficiency with the US, and a 10% capability on all imports.
- Goods from Vietnam are now subject to a reciprocal rate of 46%
- 32% on import from Taiwan
- 26% of India
In addition, China faces a reciprocal 34% rate, which is above the 20% tariff that has been in effect since March.
By the end of Thursday, the share of Nvidia fell by almost 8% due to the announcement of rates, while Amazon and Meta fell by 9% each, according to Cnbc. Apple has led the declines, with 9%-his steepest decline since the sales-induced market sale in March 2020.
Shares of Microsoft and Alphabet both dropped about 2% and 4% respectively. The Nasdaq -composed index, a benchmark that was weighed very much after technical stocks, fell by almost 6%. This is all due to the fear that their operating costs will rise and that supply chains, which rely on overseas manufacturing and imports, will be disrupted.
Many of the so-called “Magnificent Seven” Apple, Microsoft, Alphabet, Tesla, Nvidia, Meta and Amazon-took another hit during Friday’s trade, after China re-relieved again with a tariff of 34% on imports from the US. According to Nvidia and Apple, both 7%dropped Yahoo financewhile shares in Meta sank with more than 5%. And CNBC reported on Friday that the “magnificent Seven” has lost a joint $ 1.8 trillion market value over the past two days.
From today, cryptocurrency prices have a significant negative impact.
Impact on enterprise level: Apple and NVIDIA
Apple products – mainly manufactured in China, India and Vietnam – are likely to become more expensive as the company passes increased import costs to US consumers. Morgan Stanley analysts estimate that Apple’s profits could take a hit of 7% in 2026 due to annual cost of $ 8.5 billion.
US Chipmaker -Giant Nvidia should be somewhat protected from the impact due to Trump’s release on semiconductorsAnd it saves from the 32% tariff on chips manufactured in Taiwan by TSMC. However, it is unclear whether the release of the semiconductor will also cover the 10% baseline rate on all imports, and the rumor has it that it will be so New rates on chips come soon.
Rates can disrupt ‘AI -innovation’
The USA rely on China and Taiwan For about 80% of its watering capacity for 20 to 45 Nm chips and about 70% for 50 to 180 Nm chips. Technical firms can try to move the acquisition to reciprocal tariff -free countries, but many will pass on the extra cost to consumers.
Separately, Trump has recalled tariff releases Chinese imports worth $ 800 or less. This is especially bad news for Amazon, as many of the low price goods listed on the market are of Chinese sellers.
Analysts are concerned about possible retaliation from China, as the country Ministry of Trade said it will take ‘determined countermeasures’ if the US does not cancel its rates’ immediately. Dan Ives of Wedbush Securities said in a note that rates from China could limit the supply chain for the next generation Nvidia chips/hardware, which disrupts AI innovation.
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