President Donald Trump’s Liberation Day Tariffs are causing the share price of some of the world’s most valuable companies to plunge.
It includes the tech-dominated group of stocks, informally dubbed as the “Magnificent Seven”, which includes Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla.
The companies have collectively shed more than $6 trillion (A$9.96 trillion) in market value since their peak in late 2024.
Companies such as Tesla has seen its shares drop more than 11% since last Tuesday to $233 (A$386.71)
As for Apple, Wedbush analyst Dan Ives has warned that the company faces a significant exposure to tariffs as the majority of its iPhones are assembled in China.
Ives has slashed his target by $75 (A$124) to $250 (A$414), calling the tariffs “a complete disaster” for the tech giant.
If Apple were to pass on the increase in iPhone prices to consumers, Ives estimates that an iPhone could cost as much as $2,300 (A$3,630).
While some have suggested that a workaround would be for Apple to begin shifting production into the US, there are severe limitations with that move. “The reality is it would take three years and $30 billion (A$47.45 billion) in our estimation to move even 10% of its supply chain from Asia to the US with major disruption in the process,” wrote Ives.
“The concept of making iPhones in the U.S. is a non-starter in our view at $1,000 (A$1659),” Ives said. “Price points would move up so dramatically it’s hard to comprehend.”
Microsoft’s share price has fallen more than 4.4% to $357.86 (A$593.94), while Meta has dipped nearly 10% over the past week and is now trading at $516.25 (A$856.82). Apart from facing regulatory action in the EU, the company is also bracing itself for a landmark antitrust litigation case that might force it to unwind its acquisition of WhatsApp and Instagram.
Amazon meanwhile has lost around 6.5% of its share price since last Tuesday and Nvidia which already saw its share price rocked earlier this year when DeepSeek was unveiled, has now lost nearly 10% of its share price since last Tuesday. It is now trading around 30% lower compared to the start of the year.
