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 announced 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 7.1%, Google-parent Alphabet GOOGL.O down 2.6%, Microsoft MSFT.O down 2.4%

Meta Platforms META.O falls 4.2% and Amazon AMZN.O down 5.8%

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

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

Rosenblatt Securities analyst Barton Crockett says Apple could face $39.5 billion of tariff costs and estimated ~32% hit to operating profit and EPS, annualized

"Apple might want to raise prices to offset this. But we estimate that +/- 40% price hike on devices would be required to fully offset tariff costs," Crockett says

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