President Donald Trump’s extensive tariffs rollout on Wednesday was worse than expected for the market, according to Dan Ives, global head of technology research at Wedbush Securities. On Wednesday, Trump announced plans to impose a 10% baseline tariff on all countries and even higher rates on some nations in particular, like a 34% duty on China, 20% on the European Union and 32% on Taiwan. U.S. stock futures plummeted following the announcement. Futures tied to the Dow Jones Industrial Average dropped about 1,000 points, or 2.3%, while S & P 500 futures declined more than 3% and Nasdaq-100 futures fell more than 4%. “We would characterize this slate of tariffs as ‘worse than the worst case scenario’ the Street was fearing,” Ives wrote in a Wednesday note following the president’s announcement. “While there are many details to be worked out and investors will focus on the specifics over the coming 24 hours, the jaw dropper was the China reciprocal tariff of 34%. Taiwan at 32% is the other major one along with the EU at 20%.” As a result of the tariffs, tech stocks are due to face “major” pressure, Ives added, pointing to investor anxiety around “demand destruction, supply chains, and especially the China/Taiwan piece of the tariffs.” “For Nvidia and other chip players with significant exposure to China and Taiwan supply chains the worry will be around pricing and margin impacts along with what this means for the global supply chain looking forward,” he continued. Ives also cited Apple as another name to watch, given that much of their iPhone manufacturing is performed in China. Shares of the iPhone maker plunged more than 6% in extended trading Wednesday, while Nvidia shares shed more than 4%. Other “Magnificent Seven” names tumbled. Amazon and Tesla moved roughly 6% lower, while Alphabet slid more than 3%. Looking ahead, Ives said he continues to believe that negotiations between companies, countries and the Trump administration will still take place over the coming months.
