US President Donald Trump's tariff war, dubbed "Liberation Day," has wiped trillions of dollars off the market value of publicly traded companies, with across-the-board taxes of up to 50% expected to severely impact businesses worldwide.
U.S. brands, from Nike to Apple, have seen some of the steepest drops in their share prices and market value as investors react to concerns about rising prices and a potential slowdown in consumer spending, according to The Guardian.
Apple and Amazon
Asian countries are a prime target of Trump's tariffs, led by China, which was hit with a 54% tariff on US imports. This led to a sharp decline in technology stocks, which rely heavily on the region for components. China quickly retaliated by imposing a 34% tariff on US goods.
Apple
Apple saw its market value drop by more than $300 billion (£230 billion), its worst daily drop since 2020, due to concerns that the tariffs would significantly increase its costs and raise the prices of products like the iPhone.
Apple's stock price fell 3% at the opening bell, Amazon fell 1%, and Nvidia started the day down nearly 6%.
Apple manufactures most of its devices in China, and two other major manufacturing hubs, India and Vietnam, were also affected by tariff rates of 26% and 46%, respectively.
Other large tech companies from the Magnificent 7 suffered similar losses. Amazon, a leading seller of imported goods from around the world, lost nearly $190 billion in market value.
Sellers in China hold a market share of more than 50% on Amazon's third-party marketplace.
Analysts at Bank of America see the tariffs as "sector negative" for e-commerce. However, the bank added that large companies, such as Amazon and eBay, were better able to replace sellers and, if global prices rise, could benefit from collecting a commission on the total sale price of the product.
Nvidia, the leading chipmaker and key player in the AI boom, lost $210 billion in market value after Trump imposed a 32% tariff on imports from Taiwan, where its major semiconductor manufacturing facilities are located.
Nike and Gap
Prices of Nike's signature Jordan sneakers, Levi's jeans, and Gap clothing are likely to rise in the United States as Trump's tariffs impact Asian manufacturing hubs that support the global apparel industry.
Nike has lost $13 billion in market value despite its efforts to reduce manufacturing in China in recent years.
Nike
Last year, 95% of Nike's shoes were made in factories in countries most affected by the tariffs: Vietnam, Indonesia, and China.
High tariffs in many leading apparel-producing countries also threaten to significantly increase supply chain costs, from sportswear to sweaters.
Nearly 60% of Nike's branded apparel was made in Vietnam, China, and Cambodia last year. However, since nearly 60% of Nike's total sales come from outside the United States, the sportswear company has some protection from a potential US economic recession.
Gap, whose largest supplier is Vietnam, was among the largest listed companies on the US stock exchange, with its shares closing down more than a fifth. Levi's shares fell nearly 14%, while Under Armour shares fell 19%.
Nike's stock price fell an additional 4% in early trading, with Gap shares falling more than 2%, Levi's shares falling nearly 5%, and Under Armour shares falling more than 7%.
Boeing and Disney
Fears that the tit-for-tat tariff war could spark a global recession and slow consumer spending have hit the travel sector hard, with investors selling off heavily.
Boeing was among the biggest losers on Wall Street, with shares of the aircraft and aerospace manufacturer falling more than 10% as Trump's taxes ended 45 years of near-duty-free production in the sector.
The expiration of a 1980 World Trade Organization (WTO) agreement, which paved the way for the mass export of U.S. commercial aircraft, particularly to Europe, means higher manufacturing costs for airline customers and, consequently, higher ticket prices.
Boeing shares fell 9% in early trading, Norwegian Cruise Line shares fell about 8%, and Disney shares fell 3.8%.
Boeing is the largest U.S. exporter by dollar value, exporting about 80% of the commercial aircraft it manufactures.
Norwegian Cruise Line was among the biggest losers in the S&P 500, with its shares falling more than 16% due to concerns about a decline in consumer spending on international travel.
Cruise companies, including Carnival, Royal Caribbean, Viking, and Lindblad, lost nearly $10 billion in combined market value.
Disney, the world's largest entertainment company, which operates theme parks and cruises, was among the biggest losers on the Dow Jones Industrial Average, falling about 10%.
American Express and Goldman Sachs
American Express shares opened Friday trading down 6.4%, Goldman Sachs shares fell 7.6%, and Morgan Stanley shares fell 7.9%.
Although the tariffs are imposed on products, not services, financial companies have also been hurt. Experts fear that Trump's sweeping border taxes and retaliatory measures from targeted countries are exacerbating the risk of a severe global economic slowdown and recession in the world's largest economy.
Goldman Sachs
Shares of credit card company American Express fell nearly 10% as investors reacted to companies closely linked to consumer spending and credit.
American Express is much smaller than its US-listed global competitors—Visa shares fell 2%, while Mastercard shares fell 3%—but it has significant exposure to US consumers.
According to statistics from last year, when American Express published its regional distributions, nearly half of the cards issued by American Express in 2021 were in the US.
Shares of investment bank Goldman Sachs, which earlier this week described the sweeping tariffs as a “growth shock” that would impact US consumers, fell about 10% on concerns about slowing mergers and acquisitions activity as companies scale back investments. Shares of rival Morgan Stanley fell 9.5%.
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