Louis Harvey 
Editor
Trump's announcement sparks panic in financial markets
President Donald Trump’s announcement of new tariffs has triggered a wave of sell-offs in the tech sector, significantly impacting the stock prices of major companies like Apple and Amazon.
The decision, made on Wednesday, April 2, 2025, shook financial markets, raising concerns about potential consequences for the global economy and companies that rely on international supply chains.
The market reaction was immediate: Apple shares fell by about 9%, a drop that, if confirmed at closing, would represent the sharpest decline in the past five years. Amazon saw a decrease of approximately 7%. Both companies, heavily dependent on imports from countries like China, now face the prospect of high tariffs, with a projected 54% duty on products from China and 46% on those from Vietnam, starting April 9, 2025. The introduction of these tariffs could lead to higher consumer prices for electronic products or a reduction in profit margins for companies like Apple and Amazon, should they choose to absorb part of the additional costs. Apple, in particular, has historically maintained a gross margin of around 38%, though at times it has been higher. Wall Street’s concern lies in the potential drop in demand if Apple raises the prices of devices such as Macs, iPhones, and iPads.
The impact of the tariffs was not limited to Apple and Amazon. Other major tech companies also suffered significant losses: NVIDIA shares fell by over 4%, while Tesla experienced a similar decline, erasing much of the gains made the previous day. Meta saw a drop of around 7%.
What do you think about this situation? Share your thoughts in the comments as US tariffs also hit LCD panels and could drive up the price of the Nintendo Switch 2.
President Donald Trump’s announcement of new tariffs has triggered a wave of sell-offs in the tech sector, significantly impacting the stock prices of major companies like Apple and Amazon.
The decision, made on Wednesday, April 2, 2025, shook financial markets, raising concerns about potential consequences for the global economy and companies that rely on international supply chains.
The market reaction was immediate: Apple shares fell by about 9%, a drop that, if confirmed at closing, would represent the sharpest decline in the past five years. Amazon saw a decrease of approximately 7%. Both companies, heavily dependent on imports from countries like China, now face the prospect of high tariffs, with a projected 54% duty on products from China and 46% on those from Vietnam, starting April 9, 2025. The introduction of these tariffs could lead to higher consumer prices for electronic products or a reduction in profit margins for companies like Apple and Amazon, should they choose to absorb part of the additional costs. Apple, in particular, has historically maintained a gross margin of around 38%, though at times it has been higher. Wall Street’s concern lies in the potential drop in demand if Apple raises the prices of devices such as Macs, iPhones, and iPads.
The impact of the tariffs was not limited to Apple and Amazon. Other major tech companies also suffered significant losses: NVIDIA shares fell by over 4%, while Tesla experienced a similar decline, erasing much of the gains made the previous day. Meta saw a drop of around 7%.
What do you think about this situation? Share your thoughts in the comments as US tariffs also hit LCD panels and could drive up the price of the Nintendo Switch 2.
