Trump's 'Reciprocal' Tariff Threat Wipes Out Nearly $1.8 Trillion From Magnificent 7, Dan Ives Warns It Could Set US Tech Back A Decade: 'Investors Know Math And The Sad Reality'

Last week, Donald Trump announced "reciprocal" tariffs that have caused significant turbulence in global markets, with the stock prices of major U.S. tech companies, known as the “Magnificent 7,” plummeting and wiping out nearly $1.8 trillion in market value.

What Happened: On Sunday, Dan Ives, an analyst from Wedbush Securities, warned that Trump’s tariffs could severely hinder the U.S. tech sector's growth.

Ives underscored the long-term impact of the trade policies, stating, “Investors know math and the sad reality” — suggesting the U.S. tech industry could be set back by a decade if these tariffs remain in place.

If these tariffs (in current form/rates) hold…it would set the US tech world back a decade in our opinion while China is the clear winner…the US tech supply chain turned upside down overnight and the cost structure will be untenable. Investors know math and the sad reality.
— Dan Ives (@DivesTech) April 6, 2025

Trump’s reciprocal tariff strategy, which includes a 10% universal tariff on all imports and additional duties targeting countries like China, India, and the EU, sparked a massive sell-off in the stock market.

The S&P 500, which represents some of the largest companies in the U.S., lost $5 trillion in market value, with key companies in the tech sector suffering heavy losses.

Their collective market cap erosion of Apple Inc. AAPL, Microsoft Corp. MSFT, Amazon.com Inc. AMZN, Alphabet GOOGL GOOG, Meta Platforms Inc. META, Nvidia Corp.NVDA, and Tesla Inc. TSLA amounted to a staggering $1.8 trillion, with Apple losing $534 billion alone.

Company	Stock Price On Wednesday ($)	Shares Outstanding (Billion)	Stock Price On Friday ($)	Market Cap on Wednesday (Billion $)	Market Cap on Friday (Billion $)	Erosion (Billion $)
Apple	223.89	15.04	188.38	3367.31	2833.24	534.07
Microsoft	382.14	7.43	359.84	2839.30	2673.61	165.69
Amazon	196.01	10.6	171.00	2077.71	1812.60	265.11
Alphabet A	157.04	5.83	145.60	915.54	848.85	66.70
Alphabet C	158.86	5.50	147.74	873.73	812.57	61.16
Meta	583.93	2.19	504.73	1278.81	1105.36	173.45
Nvidia	110.42	24.4	94.31	2694.25	2301.16	393.08
Tesla	282.76	3.22	239.43	910.49	770.96	139.52

Why It Matters: The tariffs have far-reaching consequences, especially for the U.S. tech sector, which relies heavily on global supply chains. Apple, for example, could see the price of an iPhone 16 Pro Max soar from $1,599 to around $2,300, according to industry analysts.

Furthermore, the tariffs could push tech companies to reconsider their operations and manufacturing locations. While the U.S. government is betting on reshoring jobs, the increasing cost of labor and the slow pace of manufacturing build-outs could mean limited job growth, particularly with increasing automation.

Ives previously pointed out that tech earnings would likely decline by 15%, and the price of consumer electronics could rise by up to 50%, burdening American consumers.

Despite a robust U.S. labor market that added 228,000 jobs in March, escalating trade tensions have cast a shadow over the positive economic momentum.

Comparisons to the infamous Smoot-Hawley Tariff Act of 1930 — which deepened the Great Depression — are fueling concerns about the broader global economic outlook.

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