The declaration of customs tariffs by US President Trump has led to approximately $2 trillion value loss in the markets as the shares of the “Magnificent Seven” started the week with a sharp decline.

Following US President Donald Trump’s announcement of customs tariffs, the market value of major technology companies, known as the “Magnificent Seven”, is rapidly decreasing. Companies including Apple, Google, and Microsoft have collectively lost more than $6 trillion in market value since the peak at the end of 2024. Trump, on Sunday, doubled the customs tariffs and stated that investors must bear the consequences, putting trade negotiations with China on hold for now. Apple, Alphabet, and Microsoft shares approached year-long lows, with Apple losing 4.8% in value while other members of the “Magnificent Seven” experienced declines ranging from 1.5% to 4.8%. Tesla shares, on the other hand, fell by 7% to $223, making it the company with the biggest loss among the “Magnificent Seven.” TOUGHER TIMES AHEAD FOR TESLA

Wedbush analyst Dan Ives mentioned that Apple is the technology company most exposed to American customs tariffs due to iPhones assembled in China. Ives stated that the trade war will further exacerbate Tesla’s existing challenges and pointed out that the brand suffered due to CEO Elon Musk’s support for Trump and the far-right in Europe.

Ives also decreased the target price for Tesla from $550 to $315. Although this figure is still approximately $100 above the current share price, it implies a significant decrease from his previous optimistic estimate. “IPHONE PRICES MAY RISE”

By lowering the target price for Apple by $75 to $250, Ives described customs tariffs as a “complete disaster.” These tariffs may force the company to increase iPhone prices in the US to maintain high profit margins.

Apple was exempt from customs tariffs imposed on China during Trump’s first term. However, despite announcing a $500 billion US investment this time, it remains uncertain whether the company will receive the same exemption.

Apple has kept the starting price of the iPhone Pro model at $1,000 for years. Ives expressed, “The idea of producing iPhones in the US is not realistic for us at the $1,000 price point. Prices would increase so dramatically that it’s hard to even consider.” “CHINESE BUYERS MAY TURN TO LOCAL BRANDS”

Regarding Tesla, Ives mentioned that following a weak delivery report in the first quarter of the year, the company’s sales may continue to decline this year as well. Highlighting the potential shift of Chinese buyers to local brands due to the trade tensions, Ives stated, “The impact of Trump’s customs tariff policies in China and the association with Musk cannot be underestimated. This situation will redirect Chinese consumers to local brands like BYD.”