The declaration of customs tariffs by U.S. President Trump has caused approximately 2 trillion dollars in market loss, leading to a sharp decline in “The Magnificent Seven” shares at the beginning of the week.

Following the customs tariffs announced by U.S. President Donald Trump, the market value of the major technology companies known as “The Magnificent Seven” is rapidly declining. Companies including Apple, Google, and Microsoft have lost more than 6 trillion dollars in market value since the peak at the end of 2024. Trump, on Sunday, doubled the customs tariffs and stated that investors must face the consequences, putting trade negotiations with China on hold for now. While Apple, Alphabet, and Microsoft shares approached their lowest levels in a year, Apple lost 4.8% of its value, and other members of “The Magnificent Seven” experienced declines between 1.5% and 4.8%. Tesla shares, on the other hand, fell by 7% to 223 dollars, making it the company with the biggest loss among “The Magnificent Seven.” TOUGHER DAYS AHEAD FOR TESLA

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

Ives also reduced the target price for Tesla from 550 dollars to 315 dollars. While this figure is still about 100 dollars above the share price, it represents a significant decrease from his previous optimistic estimate. “IPHONE PRICES MAY RISE”

By lowering the target price for Apple by 75 dollars to 250 dollars, Ives described customs tariffs as a “complete disaster.” These tariffs could force the company to increase iPhone prices in the U.S. 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 dollar investment this time, it is uncertain whether the company will receive the same exemption.

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

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