The Motley Fool·2025-04-03 18:27Market Impact - The U.S. stock market is experiencing significant declines due to new tariffs announced by President Trump, with the Dow Jones Industrial Average down over 1,300 points (3.1%), S&P 500 down 3.9%, and Nasdaq Composite down 4.9% [1] - Major companies like Apple, Meta Platforms, and Alphabet have seen substantial drops in their stock prices, with Apple down more than 8%, Meta down over 6%, and Alphabet down more than 3% [2] Tariff Details - The new tariffs start at a minimum base rate of 10% and can rise significantly based on each country's trade surplus with the U.S. [3] - For example, China is calculated to impose hidden tariffs of 67% on U.S. imports, resulting in a new tariff of 34% on Chinese imports [4] Company-Specific Analysis - Apple is particularly vulnerable to the new tariffs, with potential profit cuts of $20 billion, a 5 percentage point reduction in gross margins, and an estimated earnings hit of $1.24 per share by 2026 [6] - Bank of America analyst Wamsi Mohan has reduced Apple's price target from $265 to $250 while maintaining a buy rating [5] - Meta and Alphabet could see revenue impacts of 16% and 15% respectively due to tariffs and a slowing economy, as both companies rely heavily on digital advertising [8] Market Sentiment - The widespread nature of the tariffs has created uncertainty in the stock market, leading to declines across nearly all stocks as investors brace for the economic impact [9] - Despite the volatility, some analysts suggest that long-term investors may find opportunities in major tech stocks, which are trading at valuations significantly lower than their 52-week highs [10][11]