“A Complete Disaster”: Trump’s Trade War Has Shredded Big Tech’s $2 Trillion in Market Cap in a Few Days, and It’s Not Over

The so-called “magnificent seven” companies, which include Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla and Meta✴, continue to decline amid the trade war launched by US President Donald Trump. Since the introduction of new trade tariffs on imported goods to the US, the companies have collectively lost about $2 trillion in market capitalization.

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Shares of tech giants have plunged after the US president announced additional trade tariffs on goods imported into the country for dozens of countries late last week. Interestingly, since reaching their peak at the end of last year and until now, the combined capitalization of the “magnificent seven” companies has fallen by more than $6 trillion.

Shares of electric carmaker Tesla fell 7% to $223. Apple, Alphabet and Microsoft fell to yearly lows of $175, $143 and $345, respectively. The iPhone maker’s shares fell 4.8%, while other IT giants fell 1.5% to 4.8%. That group of companies accounts for most of the more than $5 trillion that the S&P 500 index has lost over the past two trading sessions.

Wedbush analysts say Apple is among the U.S. tech companies most exposed to the new tariffs on Chinese imports because most iPhones are assembled in China. The trade war will also exacerbate problems for Tesla, which continues to struggle with a growing crisis due to the fact that the automaker’s CEO, Elon Musk, is a major Trump supporter.

Against this backdrop, Wedbush analyst Dan Ives cut his Tesla price target to $315 from $550 per share. His new target is still $100 above the automaker’s last trading price. On Apple, the analyst cut his target by $75 to $250, saying the new tariffs were a “total disaster” for the tech giant, which will likely have to raise the price of iPhones sold in the U.S.