Big Tech stocks down after Trump's sweeping tariff decision

Shares of Big Tech stocks fall in premarket trading after U.S. President Donald Trump announces tariffs, including on China

Trump said on Wednesday he would impose a 10% baseline tariff on all imports to the U.S. and higher duties on some of the country's biggest trading partners

Apple AAPL.O fall 6.9%, Google-parent Alphabet GOOGL.O down 2.3%, Microsoft MSFT.O down 1.8%

Meta Platforms META.O falls 3.2%, Amazon AMZN.O down 5.1%

The tariffs could weigh on tech stocks due to worries over supply chain, as well as pricing and margin impacts as companies such as Apple and Nvidia have big exposure to China and Taiwan for manufacturing their products

Hyperscalers that need a lot of chips and steel for datacenters may see delays and millions in extra costs from pricier chips and steel

"Tariff-driven hardware cost increases could delay enterprise AI adoption and narrow the market to cash-rich hyperscalers" - Abhishek Singh, partner at Everest Group

Wedbush analysts say tech stocks will be under major pressure as the worries about demand destruction, supply chains and especially the China/Taiwan piece of the tariffs

"It is possible some countries will choose to retaliate through non tariffs barriers, which could target the largest U.S. technology companies" - D.A. Davidson & Co analyst Gil Luria