Actions in the best American companies, including Apple, Amazon and Tesla, fell afterwards on Wednesday, while Donald Trump’s pricing regime threatened generalized upheavals to the world supply chains.
Technological companies were Among the hardest In the initial market reaction, contracts following the NASDAQ dropped by 4%. Apple, which is highly exposed at additional prices on China, saw its stocks fall by 7%, with Amazon down approximately 6%.
Trump’s escalation World Trade War Lays a significant risk for technological supply chains, after senior executives spent months to court the president in order to soften or earn exemptions from policies that could strike their results.
Technological companies were not the only ones who suffer late Wednesday. The actions of large retailers and consumer brands also sank after the announcement of Trump’s prices, Walmart lowering 7%. Target dropped by more than 5% and the Nike sportswear group was reduced by 7% in trading after working hours.
A universal tariff of 10% on all countries will apply from midnight on April 5, while higher “reciprocal” prices, which apply to several geographies, including EU, China, the United Kingdom, Japan and South Korea, should take effect from midnight on April 9.
Wedbush analyst Daniel Ives wrote the wave of new prices was “worse than the worst case” that the markets feared. “Technological actions will clearly be under significant pressure on this announcement [over] Soucilues concerning the destruction of the request, the supply chains and in particular the piece of China and Taiwan of the prices. »»
A framework for a large technological company said that exploitation under the current administration was like “trying to touch a moving target”. “I am more worried that he will break the American economy” than any set of prices, said the person.
Apple refused to comment whether there was a prospect of what he obtained a sculpture of the new prices, as he managed to do during Trump’s first term. A White House spokesman confirmed that there was no exemption for Apple in the president’s decree.
Tim Cook, Director General of Apple, walks on a geopolitical striking rope, with the supply chains of the company closely linked to China, where Foxconn Pump on millions of iphones each year. A $ 500 billion spending plan Announced in February was considered an attempt to appease Trump.
Apple ships around 50 million iphones in the United States each year, with the vast majority made in China. The iPhone remains the flagship product of the company and represents more than half of its total income, with its company Mac, iPad, Portables and fast -growing services composing the rest.
Trump announced that he would impose a “reciprocal” rate of 34% on Chinese imports – in addition to a 20% rate that he has already imposed – as well as 26% on India and 46% on Vietnam, where Apple also manufactures.
The unilateral movement affecting several crucial countries of manufacture would not only affect the relations of the supply chain close to Apple with China, but also blunder any advantage of its advantages try to diversify Its manufacturing base elsewhere.
Amazon has also engaged in a recent campaign to court Trump, after facing the president’s anger during his first mandate. The founder of the company, Jeff Bezos, attended Trump’s swearing in and has dinner with him several times in recent months.
The Seattle -based conglomerate depends on Chinese imports to store its warehouses, and about a quarter of the costs of its arms are linked to China, according to Morgan Stanley analysts.
Nvidia’s actions, on the other hand, lost more than 5% after the opening hours, despite the White House stating that semiconductors would be exempt from the reciprocal regime for the moment.
The chip giant is based on the Taiwan Semiconductor Manufacturing Company to manufacture its cutting -edge artificial intelligence chips, whose sales have propelled the company to high assessments in the last two years.
Nvidia, whose chief executive officer, Jensen Huang, has similarly promised hundreds of billions of dollars in spending in the United States over the next four years in a Interview with the Financial Times Last month, refused to comment.
TSMC shares have dropped by around 6% in trade after opening hours. The company has recently been committed to investing an additional $ 100 billion in the manufacture of American fleas.
Meta shares were down approximately 5%. He previously warned that his advertising revenues in China could be affected in the event of commercial reception with the United States.
Trump also confirmed that 25% prices will be taxed on all foreign cars and manufacturing at midnight, hitting stocks in all American car manufacturers.
Tesla’s shares fell 8% of exchanges after opening hours, investors were concerned about the impact on its world supply chain, as well as the prospect of reprisals on the largest electric vehicle manufacturer in the world.
Tesla last month warned The cost of manufacturing cars would increase because “certain parts and components are difficult or impossible to find in the United States” and American vehicles would become less competitive abroad.
An information sheet on the White House said that cars and car parts “already subject to prices”, copper and “certain minerals that are not available in the United States” would be exempt, without providing more details.
Daniel Newman, managing director of the Futurum group, described Trump’s decision as a “moment of dressing of the dressing” for technological investors who have been nervous for weeks.
“You look at the market react and go there: the whole world has essentially become dependent on this very accessible economy,” he said.
For retailers, the movements in share have occurred despite years of effort to diversify their supply chains after Trump has put major prices on imports from China during his first mandate. The suppliers of the Home Depot, the largest domiciliary renovation chain, have moved production in Southeast Asia, Mexico and the United States, CEO Ted Decker said last month.
Target moved production of clothing in China and increasingly to Central American countries such as Guatemala and Honduras, said sales manager Rick Gomez last month. Trump hit Guatemala and Honduras with price rates of 10% on Wednesday.
Target refused to comment.
“These newly announced prices – and the expected reprisals on American companies – are likely to destabilize the American economy, undergoing the objectives of strengthening national manufacturing and growth,” said Michael Hanson, main executive vice -president of Retail Industry Leaders Association, which has the objective as a member.
The new prices have triggered an immediate thrust for special relief. The Consumer Brands Association, whose members include manufacturers of food products Pepsico, Mondelez and Kraft Heinz, asked to exempt certain “critical ingredients” from the samples.
“We encourage President Trump and his sales advisers to refine their approach and exempt ingredients and key contributions to protect manufacturing jobs and prevent unnecessary inflation to grocery store,” the association said.
Additional reports by Rafe Uddin, Hannah Murphy and Alex Rogers
