U.S. tech giants shed hundreds of billions of dollars in market value on Monday after the U.S. and China escalated their ongoing trade war. And tech companies can do little about it.
On Friday, the Trump Administration announced $200 billion in new tariffs on Chinese imports after accusing China of backing away from a possible trade deal. On Monday, China president Xi Jinping’s government countered by raising tariffs on $60 billion in U.S.-produced batteries, coffee, and other products starting June 1.
Worried about the trade war’s impact on the U.S. economy, investors have been unloading their shares, including those of tech companies, in recent days. On Monday. Apple shares tumbled more than 5% in mid-day trading on Monday to $186.61 while Tesla’s stock dropped nearly 6% to $225.70.