Liberated or Devastated? Tech Stocks Reel from Trump’s Tariff Storm

On April 3, 2025, President Donald Trump declared "Liberation Day," unveiling a sweeping tariff plan that sent shockwaves through global markets. Promising a 10% baseline tariff on all imports, 25% on foreign-made autos, and a “reciprocal” tariff model to match duties imposed on U.S. goods by other nations, Trump aimed to protect American industries. Instead, his policy ignited a firestorm of panic selling, plunging Wall Street into one of its darkest periods since the 2020 COVID-19 crash. The fallout has been nothing short of a market mayhem, leaving investors, tech billionaires, and global economies reeling.

The immediate impact on major indices was staggering. On Liberation Day, the Dow Jones Industrial Average plummeted 4%, shedding nearly 1,700 points, while the S&P 500 dropped 4.8%, and the tech-heavy Nasdaq Composite cratered 6%. By April 4, the Dow had lost over 1,500 points for two consecutive days—a historic first—bringing its total decline to 2,231 points, or 5.5%, closing at 38,314.86. The S&P 500 nosedived 5.97% to 5,074.08, marking its worst two-day performance ever, and was down 17% from its recent high. The Nasdaq fell 5.8% to 15,587.79, entering bear market territory with a 22% drop from its December peak. By April 7, the S&P 500 had fallen 10.7% since April 2, reflecting a $5 trillion loss in U.S. market value over the first two trading days post-Liberation Day.

Tech stocks, heavily exposed to global supply chains, bore the brunt of the sell-off. Apple, a cornerstone of the tech sector, saw its stock plummet 8% on Liberation Day, the steepest drop in five years, and by April 7, it was down 10.15%, closing at $182.68 from $203.38. Nvidia, a darling of the AI boom, fell 9.6%, closing at $99.18, while Tesla dropped 10.66% to $239.50, exacerbated by the auto tariffs and backlash against Elon Musk’s political stances. Intel suffered the most, declining 13.1% to $19.77, as its reliance on international manufacturing made it particularly vulnerable. Posts on X captured the sentiment, with users noting that tech giants like Apple, Nvidia, Meta, and Tesla were “taking a beating” as tariffs threatened to upend their operations.

The wealth of tech billionaires evaporated at an unprecedented rate. According to Bloomberg’s Billionaires Index, the world’s 500 richest people lost over $500 billion in the two trading days following Trump’s announcement. Elon Musk, the world’s richest person, saw his net worth plummet by $134.7 billion in 2025, dropping to $297.8 billion by April 7. Jeff Bezos, Larry Ellison, and Jensen Huang each lost over $20 billion, while Mark Zuckerberg’s fortune took a $9.5 billion hit on Liberation Day alone. In contrast, Warren Buffett, less exposed to tech, saw his wealth decline by $14.5 billion but still gained $11.5 billion for the year, reaching $153.5 billion.

The future remains uncertain as Trump doubles down, threatening 50% tariffs on China if it doesn’t retract its 34% retaliatory levies. With recession fears mounting, the Federal Reserve’s reluctance to cut rates, and global trade tensions escalating, markets may face more turbulence. Tech stocks, now trading at lower P/E ratios, could offer buying opportunities, but only if trade policies de-escalate—a prospect that seems distant as Trump’s tariff storm rages on.