US President Donald Trump’s sweeping new tariff regime is sending shockwaves through Wall Street and Silicon Valley, threatening to upend the operations of Apple, Amazon and other US companies deeply reliant on foreign manufacturing. The tariffs include a universal 10% levy on all imports and much steeper duties for countries like China, Vietnam and India — where many American firms source their goods, the Financial Times reported.
Tariffs exceed worst-case market expectations
Trump’s reciprocal tariff on China now reaches 54%, including the 20% already in place. Taiwan faces a 32% tariff, while Vietnam and India are hit with 46% and 26% tariffs respectively. Tech analyst Daniel Ives described the escalation as "worse than the worst case" scenario. Nasdaq futures dropped 4%, while Apple and Amazon shares fell 7% and 6% respectively in after-hours trading.
Apple, Amazon and Nvidia caught in the crosshairs
Apple, which ships about 50 million China-made iPhones to the US each year, declined to comment on whether it would seek exemptions. Despite a $500 billion US investment pledge earlier this year, the company received no carve-out. Amazon, heavily dependent on Chinese goods to stock its warehouses, also took a hit.
Nvidia’s shares fell over 5%, with concerns mounting about its reliance on Taiwan Semiconductor Manufacturing Company for chip fabrication. Tesla fell 8% amid fears that 25% tariffs on all foreign-made cars and components could disrupt its supply chain and trigger foreign retaliation.
Retailers also suffer from widening global trade war
Large retailers were not spared. Walmart dropped 7%, Nike 7%, and Target more than 5% after Trump’s announcement. These companies had already begun diversifying away from China after the first wave of tariffs, but many still rely on global networks now caught up in the broader trade crackdown.
Executives at Home Depot and Target noted shifts in sourcing to Mexico, Southeast Asia, Guatemala and Honduras. But Trump imposed a 10% tariff on goods from the Central American nations as well.
Industry groups warn of inflation, push for exemptions
The Retail Industry Leaders Association, representing companies like Target, warned that the measures may backfire, increasing consumer costs and jeopardizing US jobs. The Consumer Brands Association, which includes Kraft Heinz, Mondelez and PepsiCo, is now petitioning for tariff exemptions on “critical ingredients” used in food manufacturing.
"We encourage President Trump and his trade advisers to fine-tune their approach and exempt key ingredients and inputs," the group said in a statement, warning of possible grocery inflation.
No exemptions granted despite heavy lobbying
Despite lobbying efforts, the White House confirmed that Apple and other major companies were not granted exemptions. Trump’s executive order emphasized that the tariffs aim to push American companies to bring manufacturing home, and officials have signalled little willingness to provide exceptions — at least in the early stages.
The fallout from the tariffs — both economic and political — is expected to intensify in the coming weeks as markets, retailers, and consumers respond to higher prices and shifting supply chains.
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