By Agboola Aluko, GLiDE NEWS
T he world’s most powerful tech companies, dubbed the “Magnificent Seven,” collectively lost a staggering $2 trillion in market value on Monday, as fears intensified over President Donald Trump’s latest salvo in a growing global tariff war.
Apple, Tesla, Microsoft, Alphabet, Amazon, Meta, and Nvidia—the titans of Silicon Valley—suffered one of their worst trading days in recent history. Their combined market capitalisation has now plummeted by $6 trillion since peaking in late 2024, underlining the depth of volatility rocking global markets.
The bloodbath was sparked by renewed uncertainty surrounding Trump’s aggressive tariff stance, particularly targeting China, a critical hub for technology supply chains. Markets reeled as the White House signaled no retreat, despite mounting diplomatic tensions and retaliatory measures from key global partners.
Tesla led the decline, nosediving 7% to $223 amid what analysts are calling a growing brand crisis, fuelled not only by global trade anxieties but also by backlash over CEO Elon Musk’s open alignment with far-right European movements and vocal support for Trump’s re-election bid.
Apple followed closely, dropping 4.8%, as investors digested the potential blow to its profits from American tariffs. The tech giant remains deeply dependent on Chinese assembly lines for iPhones and other core products.
Alphabet and Microsoft both fell to near 12-month lows, while Amazon, Meta, and Nvidia posted declines ranging from 1.5% to 4.8%. These companies, once seen as the engines of market growth, now account for a significant portion of the $5 trillion lost across the S&P 500 index over just two trading sessions.
The broader fear is that Trump's tariff escalation could spark a global trade war, undermining supply chains, compressing profit margins, and derailing the long-term investments these companies are making in artificial intelligence and next-gen infrastructure.
During a tense press briefing at the White House, Trump doubled down on his hardline position. Sitting alongside Israeli Prime Minister Benjamin Netanyahu, the President declared that he was “not reconsidering anything” regarding tariffs, but hinted at future negotiations on a “deal-by-deal basis” with individual countries.
Trump also threatened to impose an additional 50% tariff on all Chinese imports unless Beijing reverses its own retaliatory 34% tariffs, introduced just days ago. All ongoing discussions with Chinese officials were officially cancelled, Trump confirmed via social media.
In Europe, the reaction was swift. The European Commission unveiled a list of counter-tariffs targeting American goods, proposing a 25% duty on a range of products including soybeans, sausages, and nuts. Interestingly, iconic American exports like bourbon whiskey were spared—possibly a strategic decision ahead of diplomatic engagements.
With diplomatic hostilities escalating on multiple fronts, markets are bracing for further shocks. Analysts warn that unless a détente is reached soon, the world may be heading toward a prolonged period of trade disruption—one that could test the resilience of even the mightiest corporations.
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