Trump's 100% Tariff Threat on China: Tech Giants Lose $770 Billion, Nasdaq Plunges Add to favorites

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Last update time : 2025-10-11 12:17:14

US President Donald Trump's threat to impose a 100% tariff on Chinese imports has rocked the tech sector. Nvidia, Amazon, and Tesla-led megacaps shed $770 billion in value, with Nasdaq dropping 3.6% in its worst day since April. This escalates AI bubble concerns and revives global trade war fears.

The technology landscape is reeling from US President Donald Trump's aggressive trade moves against China. In response to China's new restrictions on rare earth mineral exports, Trump announced plans to slap an additional 100% tariff on Chinese imports starting November 1, alongside export controls on critical software. This escalation has intensified US-China tensions and triggered a massive sell-off in tech stocks.
The Nasdaq Composite plummeted 3.6%, marking its steepest decline since April, while the S&P 500 fell 2.7%. The "Magnificent Seven" tech giants—Nvidia, Amazon, Tesla, Microsoft, Alphabet, and Meta—collectively lost $770 billion in market capitalization. Nvidia alone shed nearly $229 billion, Amazon $121 billion, and Tesla $71 billion. These losses abruptly halted a rally fueled by massive investments in artificial intelligence (AI) infrastructure.
Experts warn that this development amplifies concerns over an AI bubble. Institutions like the Bank of England and IMF highlight that AI-driven tech valuations rival the 2000 dotcom bubble peak, with tech stocks now accounting for 40% of the S&P 500. A potential market correction could drag global growth, amid uncertainties in AI's productivity gains—ranging from transformative boosts to modest 0.7% improvements over a decade. Risks include shortages in electricity, data, or chips, potentially stalling AI progress.
Trump's tactics may serve as negotiation leverage, as seen in past "TACO" (Trump Always Chickens Out) scenarios, but China's retaliations could reignite a full-blown trade war. Investors must navigate supply chain vulnerabilities, given China's dominance in rare earths (70% mining, 93% magnet production), essential for electronics, chips, and high-tech products. In the short term, higher tariffs may fuel inflation and slow global expansion. For the tech industry, this signals a pivotal moment: Is the AI hype fading, or will it pave the way for resilient innovations?

Tags : trump china tariff tech stocks plunge nasdaq drop ai bubble tech giants loss donald trump trade war nvidia amazon tesla us china tensions artificial intelligence investments global market correction