Tariff Fears Slam Tech Giants as Apple Nears One-Year Low
- tech360.tv
- Apr 8, 2025
- 2 min read
The "Magnificent Seven" tech stocks plunged on Monday, erasing about USD 2 trillion in combined market value amid escalating concerns over U.S. President Donald Trump's global tariff policies.
Apple, Tesla, Alphabet, and Microsoft led the decline, with Apple nearing a one-year low after falling 4.8%. Tesla dropped 7% to USD 223, the steepest fall among the group.
The sell-off followed a stark warning from Wedbush analyst Dan Ives, who slashed price targets for Apple and Tesla, citing a looming "tariff economic armageddon."
Trump intensified trade tensions on Sunday by doubling down on tariffs and pausing negotiations with China, prompting fears of prolonged economic fallout.
The Magnificent Seven—once the driving force behind Wall Street’s rally—have now lost more than USD 6 trillion in market value since their peak in late 2024.
The group has contributed significantly to the over USD 5 trillion decline in the S&P 500 index across the last two trading sessions.
Ives noted Apple is particularly vulnerable due to its reliance on Chinese manufacturing, warning that tariffs could force the company to raise U.S. iPhone prices to maintain margins.
He cut his Apple price target by USD 75 to USD 250, calling the tariff impact “a complete disaster” for the tech giant.
Apple had previously secured tariff exemptions during Trump’s first term, but analysts are uncertain if similar waivers will be granted again, despite the company’s pledge to invest USD 500 billion in the U.S. over the next four years.
Ives also reduced his Tesla target from USD 550 to USD 315, still nearly USD 100 above its current trading price.
He said Tesla faces mounting challenges, including a brand crisis linked to CEO Elon Musk’s support for Trump and far-right politics in Europe.
The trade war could further hurt Tesla’s sales in China, where local consumers may shift to domestic brands like BYD.
Ives warned that the backlash from Trump’s tariff stance and Musk’s political associations could significantly damage Tesla’s position in the Chinese market.
Magnificent Seven stocks lost USD 2 trillion amid tariff concerns
Apple fell 4.8%, nearing a one-year low; Tesla dropped 7%
Analyst Dan Ives slashed price targets for Apple and Tesla
Source: REUTERS
