Tech Sector Takes a Hit as Tariffs Soar

The tech sector faced significant losses as new tariffs exceeding 30% were imposed on manufacturing hubs in China and Taiwan, culminating in a staggering 54% levy on Chinese imports. "The U.S. effective tariff rate on all imports appears to be the highest in over a century," remarked Ben Wiltshire, Citi's global rates trading strategist.

Market Reactions Worldwide

Nasdaq futures plummeted 3.3%, erasing $760 billion from the market value of the Magnificent Seven tech leaders in after-hours trade. Apple shares were particularly affected, dropping nearly 7%. Similarly, S&P 500 futures fell 2.7%, FTSE futures 1.6%, and European futures nearly 2%.

Commodities and Global Growth Indicators

Gold prices surged to a record high above $3,160 an ounce, while oil, a key indicator of global growth, dropped over 2%, with Brent futures at $73.24 a barrel. Japan's Nikkei slid to an eight-month low, down 2.8%, as various sectors including shippers, banks, and exporters suffered losses.

Global Trade at Risk

Trump's announcement of a 10% baseline tariff, with higher rates for specific Asian countries, has raised concerns over global trade disruptions. "The tariffs announced today pose significant risks to global trade, especially for supply chains in East Asia," stated Zhiwei Zhang of Pinpoint Asset Management.

Currency and Future Outlook

The U.S. dollar gained against most Asian currencies, except the yen, which strengthened. With trading partners likely to retaliate, the potential for higher prices and a U.S. recession looms large, according to market analysts.