As Trump suggests China’s tariff deferral, “Seven tech stocks surge in epic tech stocks
Big Tech stocks surged on the second day, with Tesla and Amazon leading the so-called “epic 7” stocks The Trump administration has suggested exclusion from the US-China trade war.
Tesla (TSLA) During Amazon (Amazon), it jumped 7% early on Wednesday.amzn) and Meta (Meta) It rose by about 7% and 6%, respectively.
nvidia (NVDA) climbs over 5% and Apple (aapl) 3.5% jumped. Google (Goog) and Microsoft (msft)We won about 3%.
The benefits came after President Trump softened his tone in China and suggested a potential reprieve from an unprecedented 145% “mutual” tariff on imports from the country.
He said the current rate is “too high” and “a significant decrease.” During the White House press conference on Tuesday. Trump said he plans to become “very nice” for China to reach trade talks. Treasury Secretary Scott Bescent called the US-China trade war unsustainable During a private event in DC on Tuesday.
The potential reprieve from Trump’s aggressive and unprecedented approach to trade policy is good for high-tech companies given China’s importance in the supply chain.
Approximately 90% of Apple iPhones are made in ChinaWedbush’s Dan Ives said in a previous analysis. China accounted for 17% of Apple’s revenue in 2024.
Ives also in a note to investors earlier this month that Tesla has procured “a fair amount of parts and batteries from countries including China, and that the growing trade war with China has been of little help to help EVs overcome competition from their country’s BYD in one of their most important markets. EV Company Tuesday’s first quarter revenue report missed Wall Street’s expectations.
Meanwhile, 30% of the total amount of products sold on Amazon comes from China, with Chinese advertisers accounting for 14% of total spending on Amazon ads in 2024. Recently downgraded stocks. Chinese advertisers account for 11% and 6% of ad spending on Meta and Google, respectively.
Meanwhile, Da Davidson analyst Gil Luria estimates that China and Chinese companies are between 20% and 40% of Nvidia’s final customers, but in an email to Yahoo Finance it is difficult to tell them exactly how they report (revenue).
Trump shook the global market by announcing sudden “mutual” tariffs on major US trading partners earlier this month, and enacting a 10% tariff on all global imports on April 5th. Has been suspended for 90 daysexcluding a 145% obligation to China’s imports.