Tech stocks took a sharp downturn in extended trading Wednesday after former President Donald Trump unveiled plans for sweeping new import tariffs, with Apple leading the decline among major technology companies.
Apple shares dropped over 6% in after-hours trading, marking what could become the company's steepest single-day decline since September 2020 if the losses hold through Thursday. The tech giant, which relies heavily on manufacturing in China and other Asian countries, faces particular exposure to Trump's proposed tariffs.
The announced tariffs would impose a minimum 10% tax on nearly all imports, with higher rates targeting specific countries - 34% for China, 20% for European nations, and 24% for Japanese imports. Trump framed the move as a "declaration of economic independence" aimed at boosting domestic manufacturing.
Other tech heavyweights also saw substantial drops:
- Nvidia fell approximately 4%
- Tesla declined 4.5%
- Alphabet, Amazon and Meta dropped between 2.5% and 5%
- Microsoft decreased nearly 2%
The broader market reaction was equally negative, with an S&P 500 tracking ETF falling 2.8% and a Nasdaq 100 ETF declining over 3% in extended trading.
During his speech, Trump highlighted investments by major tech companies in the U.S., specifically mentioning Apple's planned $500 billion domestic spending. However, analysts warn the proposed tariffs could potentially drive up consumer prices and slow economic growth.
The market reaction compounds recent challenges for tech stocks, with the Nasdaq having just experienced its worst quarter since 2022, declining 10% in the year's first three months.