The Magnificent Seven — the largest US technology companies by market capitalisation — lost more than US$800bn in value on Thursday as investors reacted sharply to President Donald Trump’s sweeping new tariff regime. It marked one of the worst trading sessions for megacap tech stocks since 2022.
Together, Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla saw a combined US$840bn wiped from their market caps. The sell-off was triggered by Trump’s announcement of wide-ranging tariffs late Wednesday, including steep levies of 34% on Chinese goods and 32% on imports from Taiwan — both key nodes in global tech supply chains.
Apple leads losses as China tariffs bite
Apple was the hardest hit, falling 9.25% — on track for its worst day in over five years. With around 90% of its hardware produced in China, the company is particularly vulnerable to the 34% tariff imposed on Chinese imports.
Analysts at JPMorgan estimated Apple would need to raise prices by 6% to offset the new tariff burden if no exemption is granted. Apple had previously been carved out of the 2018 tariff regime under Trump’s first administration, and analysts at Jefferies say another exemption could still be possible, especially after Apple pledged in February to invest over US$500bn in the US over the next four years.
Amazon hit by end of de minimis rule
Amazon dropped 8.98% by the end of the day after Trump signed an executive order to close the “de minimis” loophole, which previously allowed direct-to-consumer shipments valued under US$800 to enter the US duty-free. Starting 2 May, these imports — often used by retailers like Shein and Temu — will face duties of US$25 to US$50 per item, a change that could squeeze margins and logistics operations.
Nvidia, Meta and Tesla also sink
Nvidia — a poster child of the AI boom — has sunk 7.81%. The company relies heavily on Taiwanese supply chains, which are now facing a 32% US import tariff. Meta has fallen 8.96%, while Tesla dropped 6.9% following both the tariff news and weaker-than-expected Q1 sales, but closed the day 5.47% lower. Alphabet and Microsoft lost 3.92% and 2.36% respectively.
Microsoft also faced additional pressure after reports it would scale back some of its global data centre expansion plans.
Policy fallout
Dan Ives, a prominent tech analyst at Wedbush, described Trump’s tariff rollout as “worse than the worst case scenario,” warning that a lack of exemptions or revisions could bring “self-inflicted economic Armageddon” for the US tech sector.
White House officials have downplayed the link between Trump’s tariffs and market turmoil. Treasury Secretary Scott Bessent suggested the losses were due to “poor performance from technology companies” following the launch of an advanced AI model from Chinese startup DeepSeek earlier this year.
“That’s a Mag 7 problem, not a MAGA problem,” Bessent said on Bloomberg TV, referring to the Magnificent Seven.
What’s next?
The new baseline tariff of 10% on all imports is scheduled to begin on 5 April, with the additional country-specific reciprocal tariffs — including the 34% on China and 32% on Taiwan — coming into effect on 9 April.
The Roundhill Magnificent Seven ETF (MAGS), which tracks the group, lost over 10% in March. All seven companies are now trading lower for the year.
