Donald Trump’s new tariffs have sent stock markets around the world in a shock, with companies incurring hundreds of billions in combined losses in a single day on Thursday.
The sweeping Trump tariffs of up to 50 per cent on different companies across the world are poised to wreak havoc on their businesses, a glimpse of which was already visible at global markets on Thursday as they closed.
US-based giants like Apple, Nike and Amazon have suffered some of the biggest falls in terms of their share price and market value with investors reacting to fears of potential price rises and a slowdown of consumer spending.
Here are some of the brands that are most sensitive to Trump tariffs and can lose big.
Apple
The Trump tariffs impose the highest charges on a number of nations that have become key alternative production hubs to China. While China was slapped with a 54 per cent tariff, Asian countries like Vietnam and Cambodia are seeing levies of 46 per cent and 49 per cent respectively. India on the other hand faces a tariff rate of 26 per cent. Interestingly, companies like Apple have shifted their production bases to countries like Vietnam and India, and also makes its hardware in China, which has made it exposed to incurring losses.
The biggest publicly listed company saw its market valuation fall by $300 billion on Thursday over fears that tariffs would increase the costs of its products.
Nike
Nike Jordan prices are likely to rise as most of the company’s factories are located in Asian countries that face the highest Trump tariffs. As per the Guardian report, factories in China, Vietnam and Indonesia manufactured 95 per cent of Nike shoes last year.
The company is already facing heat, losing $13 billion in market valuation on Thursday and seeing its shares fall by over 14 per cent during trade.
Amazon
Amazon, a “Magnificent 7” mega-value tech company, has also been exposed to the repercussions of Trump tariffs. A leading consumer facing company, Amazon’s market value fell by almost $190 billion on Thursday.
As per a report by Guardian quoting MarketPlace Pulse, Chinese sellers have over 50 per cent market share on Amazon’s third-party seller marketplace. This particularly makes the tech giant susceptible to Trump tariff impact, instilling fear in investors.
Boeing
Fears that Trump’s reciprocal tariffs will hit consumer spending across the world also mean that the travel industry will be impacted. An investor sell-off on Thursday pushed Boeing to be one of the biggest losers at Thursday’s trade at Wall Street. Shares of the aircraft manufacturing giant fell over 10 per cent on the day.
