Trump’s tariff policy wipes over $1 trillion from the magnificent 7’s market cap

President Donald Trump’s tariff policy has had a far-reaching impact on the U.S. stock market, with a particular effect on the tech giants known as the “Magnificent 7.”

During the recent trading day, the combined market capitalization of Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla plummeted by over $1 trillion.

The Magnificent Seven index fell more than 6% overall. Moreover, the seven mega-cap technology stocks that comprise the closely watched index collectively lost about $1.03 trillion in market capitalization.

Nasdaq nosedives nearly 6% as Trump’s tariff blitz hammers tech sector

Technology stocks spearheaded a widespread and intense market sell-off after the unveiling of Trump’s long-anticipated tariff policy sparked a sharp shift toward risk aversion. The tech-focused Nasdaq Composite plunged nearly 6%, marking its worst trading session since 2020.

Apple was among the hardest hit, with megacap tech stocks suffering a wave of losses. Shares of the iPhone maker fell by more than 9%, its biggest single-day decline in over six years. Investors became increasingly worried about the potential impact of Trump’s sweeping tariff proposals on Apple’s overseas manufacturing operations, especially in China.

Other tech heavyweights were not spared, either. Amazon dropped nearly 9%, its biggest single-day decline since 2022. Nvidia, the artificial intelligence giant and a darling of retail investors, fell by more than 7%. 

Even Microsoft, which had reportedly started to roll back data centre projects worldwide, saw its stock price dip by more than 2%. The wider tech sector remains exposed, particularly as Trump has alluded to imposing tariffs on even more industries, including semiconductors.

Despite the market fallout, Trump continues to issue executive orders, appearing to have no plan to reverse this trend. To further illustrate, Trump signed an executive order closing the de minimis trade loophole, which permitted duty-free entry into the United States for shipments under $800. It is set to take effect on May 2.

Additionally, 32% tariffs on Taiwan and 46% on Vietnam, two of the many countries now under special tariffs on their exports to the United States, are included in Trump’s proposal.

Analysts warned that the U.S. could face a severe economic crisis

Dan Ives, a well-known Wedbush technology analyst, has commented on Trump’s tariff policy. In a note to clients, he described Trump’s tariff proposal as “worse than the worst-case scenario.”

Although he stated that nations should be able to reach agreements to lower their taxes quickly, he cautioned that if the tariffs remain as initially proposed, the United States will face a “self-inflicted economic Armageddon.”

However, based on Trump’s economic policies, White House officials have mostly dismissed worries that the policies shook the stock market.

Based on Treasury Secretary Scott Bessent’s argument on the situation, he said that the recent sharp market drops should instead be ascribed to the underwhelming performance of tech firms after the Chinese startup DeepSeek’s January release of an AI model that swept Silicon Valley and Wall Street.

During an interview, Bessent stated, “I am trying to be secretary of the Treasury, not a market commentator.” He added, “I would point out that the Nasdaq peaked on DeepSeek day in particular, so that is a Mag 7 issue rather than a MAGA issue.”

Experts immediately questioned how those tariff amounts came to be, with CNBC’s Steve Liesman writing that Trump “straight up lied when he said the U.S. is now charging tariffs at half the rate other countries charge.”

“The numbers do not make any sense,” said CNBC host Jim Cramer, who admitted he “really believed” Trump would’ve gone with a more grounded rationale for the percentages.

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