U.S. technology companies faced steep losses this week as President Donald Trump unveiled the most aggressive tariff package in a century, targeting key manufacturing hubs across Asia.
The Nasdaq 100 Index plunged 16 percent over six weeks, with Thursday alone wiping out $1.4 trillion in market value—the sector’s worst single‐day decline since 2020.
The tariffs impose duties of 54 percent on goods from China and 32 percent on those from Taiwan, while Vietnam and India face levies of at least 26 percent. Apple shares tumbled 9.3 percent, erasing over $310 billion in value, and chipmakers Micron and Microchip Technology each slid more than 16 percent. Broadcom fell 11 percent, Nvidia lost 7.8 percent, and Amazon, reliant on imported hardware, dropped 9 percent. Software firms such as Microsoft and Workday, with lighter hardware exposure, saw comparatively modest declines.
Analysts warn that shifting production out of Asia would be neither swift nor inexpensive. Dan Ives of Wedbush Securities estimates that relocating just 10 percent of Apple’s manufacturing to the U.S. would cost $30 billion and take three years—effectively ruling out a rapid realignment. “This is a worst‑case scenario for tech,” said Paul Stanley, chief investment officer at Granite Bay Wealth Management, noting that selling pressure is unlikely to abate soon.
Despite the turmoil, some investors see buying opportunities. Jason Britton, CIO at Reflection Asset Management, argues that market volatility has created attractive entry points for fundamentally strong businesses, provided investors can look beyond the next year. Yet concerns over slowing AI infrastructure spending and recessionary pressures have prompted many to rotate into defensive sectors, leaving big tech on unstable ground.
The sweeping tariff measures underscore the delicate balance between protecting domestic industries and preserving the global supply chains that underpin today’s technology giants. While higher duties may bolster certain U.S. manufacturers over time, the immediate fallout highlights the challenges companies face in adapting complex, decades‑old production networks. As the dust settles, industry leaders and policymakers alike will be watching closely to see whether the disruptions spur meaningful diversification—or simply deepen the tech sector’s short‑term losses.
