The United States’ top technology firms, collectively known as the “Magnificent Seven,” lost a staggering $2 trillion in market value on Monday following a severe sell-off driven by mounting fears over President Donald Trump’s intensifying trade war, particularly with China.
This elite group—comprising Apple, Tesla, Microsoft, Alphabet (Google), Amazon, Meta, and Nvidia—has now seen its total value drop by $6 trillion since peaking in late 2024, deepening an already painful slump in the technology sector. Monday’s losses reflect growing investor anxiety about the impact of widening tariffs on global trade and tech supply chains.
Tesla bore the brunt of the fall, with its shares tumbling 7% to $223. Apple followed closely with a 4.8% drop, while Alphabet and Microsoft also slipped to near one-year lows. The remaining members of the group experienced declines ranging from 1.5% to 4.8%. Together, they have contributed significantly to the more than $5 trillion in losses recorded by the S&P 500 index over just two trading sessions.
According to Reuters, Dan Ives, a prominent analyst at Wedbush Securities, warned that Apple faces the most substantial risk from American tariffs due to its reliance on Chinese assembly lines for iPhones. He added that Tesla is navigating its own set of problems, including a growing brand crisis exacerbated by CEO Elon Musk’s public support for President Trump and far-right movements in Europe.
The broader concern is that the new wave of tariffs could significantly erode profit margins and disrupt supply chains—at a time when many of these tech giants are already facing scrutiny for their high levels of investment in artificial intelligence.
Despite the economic turbulence, President Trump remains firm on his tariff agenda. During a meeting with Israeli Prime Minister Benjamin Netanyahu at the White House on Monday, Trump stated that he is not reconsidering the tariffs, although he left room for possible negotiations on “fair and good deals” with individual countries.
He described the tariffs as central to his economic policy and hinted at the potential for long-term imposition while also noting that other economic levers could be used alongside them. On the same day, he threatened to slap an additional 50% duty on U.S. imports from China if Beijing fails to lift the 34% retaliatory tariffs it imposed the previous week. China’s move was in response to Trump’s own 34% “reciprocal” tariffs on Chinese imports.
In a post on social media, Trump declared that all discussions with China regarding their request for bilateral meetings would be cancelled.
Meanwhile, the European Commission has proposed its own countermeasures, unveiling plans for 25% tariffs on several U.S. goods, including soybeans, sausages, and nuts. However, other symbolic American products such as bourbon whiskey have so far been excluded from the list.