Yeesh. Major large-cap tech indexes are down big early, with market bellwethers like Nvidia and Apple down sharply premarket. Semiconductors may be exempt from the tariffs, but consumer tech isn’t and it’s getting creamed today. Once again, Wedbush’s Dan Ives has the most succinct summary of precisely what is the nature of the tariff issue for Big Tech.
It’s the massive tariffs on China, he wrote:
“China exposed names like Apple, Nvidia, Tesla, TSMC, and a host of other tech and supply chain names will be the most under pressure as worries about this China 34% tariff (could be 54% when adding the baseline) and 32% Taiwan tariff are almost hard to look at. No matter what the White House says... basic economic theory over the last 100 years tells you one person pays these tariffs... the US consumer... it's not a debate.
Numbers are now going to have come down across the tech world as just the sheer uncertainty from this tariff announcement heard around the world will cause some IT budgets to freeze and C-level management to figure out their own supply chain and how to navigate this near-term Category 5 hurricane.”
