The group of leading U.S. technology stocks known as the “Magnificent Seven” suffered a major market sell-off on Monday, April 7, 2025, collectively losing $2 trillion in value amid rising concerns over President Donald Trump’s escalating trade war with several countries, including China.
The “Magnificent Seven” includes Apple, Tesla, Microsoft, Alphabet (Google), Amazon, Meta, and Nvidia.
This sharp drop continues a troubling trend in the tech sector. Since reaching their peaks in late 2024, these companies have lost a total of $6 trillion in market value.
Tesla led the decline with its stock falling 7% to $223. Apple, Alphabet, and Microsoft also hit near one-year lows. Apple dropped 4.8%, while other members of the group saw declines ranging between 1.5% and 4.8%.
Together, the Magnificent Seven accounted for a large portion of the more than $5 trillion lost from the S&P 500 index during the past two trading sessions.
- According to a Reuters report, Dan Ives, a Wall Street analyst at Wedbush Securities, warned that Apple is especially vulnerable to American tariffs on Chinese goods, since most iPhones are assembled in China.
- He added that the trade war would increase the challenges Tesla already faces, especially due to “a growing brand crisis sparked by CEO Elon Musk’s support of President Trump and far-right politics in Europe.”
- His comments reflect growing fears that new tariffs could reduce profit margins and disrupt global supply chains at a time when many tech companies are under pressure for their heavy investments in artificial intelligence.
Trump insists on Tariffs
Despite pressure from international trade partners, President Trump has stood firm on plans to expand tariffs across dozens of countries. However, he signaled that some negotiations might still be possible.
“We’re not looking at that,” Trump said on Monday during a meeting with Israeli Prime Minister Benjamin Netanyahu in the Oval Office. Trump emphasized that tariffs are a key part of his economic strategy.
“There can be permanent tariffs, and there can also be negotiations because there are things that we need beyond tariffs,” he added.
“We’re not looking at that,” he repeated when asked about rolling back tariffs.
“Tariffs were very important,” Trump said, “but we’re open to fair deals and good deals with every country.”
- Trump also threatened to impose an additional 50% duty on Chinese imports starting Wednesday if China does not remove the 34% tariffs it imposed on U.S. goods last week.
- Those Chinese tariffs came in response to Trump’s earlier announcement of 34% “reciprocal” duties on Chinese products.
“All talks with China concerning their requested meetings with us will be terminated!” Trump wrote on social media.
Meanwhile, the European Commission has proposed retaliatory tariffs of 25% on a range of U.S. goods, including soybeans, nuts, and sausages. However, other American products like bourbon whiskey were not included in the proposed list.
