Tech stocks down 7% since Trump’s inauguration as tariffs begin

Economists warned the tariff spat could spike inflation and send shockwaves worldwide, prompting investors to dump winning stocks and mitigate risk.

The fears have battered technology stocks that led the market in the wake of Trump’s presidential victory. The S&P 500 technology sector fell 3.5% during Monday’s session, and has lost 7.6% since Trump’s inauguration.

Tariffs may spike manufacturing costs for leading technology companies such as Apple and Nvidia that assemble and manufacture products outside the U.S.

The leading artificial intelligence chipmaker fell nearly 9% on Monday in response to the tariffs and has plummeted more than 17% since Trump took office. Shares continued to slip on Tuesday.

The company makes most of its chips in Taiwan but manufactures some more complex systems in other regions. Nvidia said it plans to produce some chips at Taiwan Semiconductor Manufacturing‘s facilities in the U.S. that were announced Monday.

Megacap technology stocks and Elon Musk-backed Tesla has lost a third of its value since the inauguration. Alphabet has dropped about 15%, while Microsoft and Amazon are down at least 10% each. Apple is up 3%.

Trump smashed hope of a potential last-minute deal Monday, clearing the way for 25% duties on Canada and Mexico to go into effect. Trump said there was “no room left” to discuss alternatives after weeks of negotiations. He also put an additional 10% tariff on Chinese goods.

All three countries responded to the new levies. Canada said it would implement retaliatory tariffs as soon as Tuesday, with Mexico preparing to announce a plan Sunday. China has punched back an up to 15% tariff on some U.S. goods.