Looks like Donald Trump’s eye-popping strategies have left not only his country’s citizens, but the leaders and people across the globe flabbergasted.
U.S. tech stocks took a heavy blow after he announced new trade measures against China, including a 100% tariff on Chinese goods and upcoming export controls on critical software. The move sparked a massive market selloff, wiping out over $770 billion in market capitalization from leading technology giants such as Amazon, Nvidia, and Tesla.
The Nasdaq (US Stock Index) plunged by 3.6% and the S&P 500 slid 2.7%, marking their worst trading session since April 2025. The selloff was triggered after Trump’s declaration on social media that, starting November 1, the U.S. would apply export restrictions on “any and all critical software,” intensifying trade tensions with Beijing.
Tech Giants Hit Hard by Tariff Shock
Among the hardest hit was Nvidia, whose market capitalization fell by an astonishing $229 billion. Once celebrated for becoming the world’s first $4.5 trillion company in late September, Nvidia’s losses highlight how deeply reliant the AI industry has become on global supply chains and stable trade relations. The company’s GPUs remain central to the booming artificial intelligence infrastructure that powers tools like OpenAI’s ChatGPT, which recently surpassed 800 million weekly users.
Amazon also suffered major losses, shedding $121 billion in market value—erasing all its gains for 2025. The e-commerce and cloud leader, which competes directly with Microsoft in AI-focused data center operations, saw its stock fall about 5% during trading and another 2% in after-hours movement.
Meanwhile, Tesla saw its market capitalization sink by $71 billion, as investors worried about the impact of higher tariffs on global supply chains and the electric vehicle market. Microsoft, heavily invested in AI and cloud computing, wasn’t spared either, losing $85 billion in market value. Other major tech firms followed the downward trend—Alphabet dropped 2% and Meta Platforms slid nearly 4%.
Ripple Effect: Crypto Market Suffers Heavy Losses
The ripple effects of Trump’s tariff announcement reached the cryptocurrency market, which saw a sharp selloff. Bitcoin fell 8.4%, leading to a $19 billion wipeout across digital assets. Analysts linked the drop to investor fears that tighter U.S.–China trade restrictions could slow global technology flows and dampen speculative investments.
Trump’s post on his Truth Social platform accused Beijing of aggressive trade practices, particularly its control over rare earth minerals essential for semiconductor and EV production. The message reinforced the administration’s push for economic self-reliance in critical tech sectors.
The recent market shock underscores the fragility of the ongoing tech rally, which has been fueled by massive investments in AI and advanced computing. With Trump’s new 100% China tariffs and export controls set to begin in November, analysts expect continued volatility across both stock and crypto markets.
As investors digest the implications of a renewed U.S.–China trade war, tech giants and traders alike are bracing for a turbulent final quarter of 2025.
FAQs on Trump’s Tariff Saga
1. How do Trump’s tariffs affect tech stocks?
Higher tariffs on Chinese goods increase production and supply chain costs for tech firms, leading to lower profit margins and investor sell-offs, as seen with Amazon, Nvidia, and Tesla.
2. Why did the crypto market fall after Trump’s announcement?
The crypto market dropped due to investor uncertainty and reduced risk appetite following the tariff announcement, which raised fears of a broader global slowdown.
3. Which companies were hit hardest by the tariff news?
Nvidia lost about $229 billion in market value, Amazon fell by $121 billion, Tesla by $71 billion, and Microsoft by $85 billion, while Alphabet and Meta also saw sharp declines.
Helene Elliott is the senior reporter for News Raise. She covers Science news. She also has a keen interest in photojournalism. Helene holds a nomination for the prestigious Red Smith Award. She is married to author Dennis D’Agostino, a former publicist with the New York Mets.
