Tech stocks plunge after Trump imposes tariffs

Shares of technology companies collapsed on Thursday after US President Donald Trump announced the implementation of large-scale new import tariffs, causing panic in global financial markets and increasing fears of a trade war, CNBC reports.

The leader of the decline was Apple, whose shares lost almost 9% - this is the worst one-day result since 2020. The production of Apple devices is largely concentrated in China and other Asian countries, making the company particularly vulnerable to escalating trade tensions.

Meta and Amazon shares fell more than 7%, while NVIDIA and Tesla lost more than 5%. Microsoft and Alphabet fell about 2%. NVIDIA, which makes chips in Taiwan and assembles its AI systems in Mexico, was also hit by the new tariffs.

Semiconductor stocks were also hit hard, with Marvell Technology, Arm Holdings and Micron Technology each down more than 8%. Broadcom and Lam Research fell 6%, and AMD fell more than 4%. Software companies ServiceNow and Fortinet fell more than 5%.

The sharp drop came after Trump announced Wednesday night that he would impose a blanket 10% tariff on all imports, as well as higher tariffs on products from select countries. The president called it a "declaration of economic independence" for the United States. Specifically, the tariffs include a 34% tariff on imports from China (on top of the current 20%), a 46% tariff on imports from Vietnam, and a 20% tariff on goods from the European Union.

China's Ministry of Commerce called on the US to "immediately cancel" the unilateral tariff measures and said it would take "strong countermeasures".

The new tariffs were announced amid a tough quarter for the Nasdaq, which is already on track for its worst performance since 2022. Stock markets are generally under pressure on concerns about a slowing U.S. economy. The Nasdaq Composite fell nearly 5% on Thursday, taking its year-to-date decline to 13%.

In his speech, Trump sought to calm markets by thanking some big tech companies for investing in the American economy. In particular, he mentioned Apple's promise to invest $500 billion in the United States over the next four years, calling the company an example of bringing business back home.

But markets appear to have remained skeptical. The sharp drop in shares underscores how deeply America's biggest tech giants are tied to global supply chains — and how vulnerable they are to geopolitical upheaval.