Catenaa, Thursday, April 03, 2025- The Magnificent Seven stocks all fell on Thursday following the Trump Administration announcement of reciprocal tariffs, with Apple faring worst of all.
The iPhone maker’s shares dropped 8% by mid-day after President Donald Trump late Wednesday imposed an 34% import tax on China, where Apple manufactures about 90% of its hardware. That could spell further trouble for Apple if China levies retaliatory tariffs.
Magnificent Seven stocks, Amazon shares slid more than 7%, while Nvidia fell 6.15%, Meta 5.74%, and Tesla fell 4.20%. Alphabet and Microsoft (MSFT) dipped 3% and 2%, respectively.
JPMorgan analysts wrote that the magnitude of the tariffs announced is much higher and broader than anticipated,”. As a result, they wrote, “price increases to offset the headwinds will be more than just modest.”
The analysts estimated that Apple would have to raise its prices 6% in order to mitigate the impact of tariffs if the company isn’t given an exemption.
Apple was exempted from tariffs imposed by the first Trump administration in 2018. Apple made an announcement in February that it plans to invest more than $500 billion in the U.S. over the next four years.
The Roundhill Magnificent Seven ETF (MAGS), which tracks the group, lost more than 10% of its value in March. All seven companies are trading in the red for the year.
Market data suggest that Thursday fall in Magnificent seven has made the group on track for a collective loss of $ 1 trillion market capitalization.
