Shares of major Asian suppliers to Apple and NVIDIA experienced significant losses on Monday, as investors grappled with the fallout from President Trump’s sweeping new tariffs on electronics and technology imports.
Key Developments
South Korean Giants Hit Hard:
Samsung Electronics (KS:005930) fell 5%.
SK Hynix (KS:000660) dropped by 8.1% as of 05:54 GMT.
U.S.-Listed TSMC:Shares of Taiwan Semiconductor Manufacturing Co (TW:2330), the world’s largest contract chipmaker and a key foundry for both Apple and NVIDIA, closed 7% lower on Friday.
Hong Kong and Japan:
China’s SMIC (HK:0981) plunged nearly 14%.
Japan’s Advantest Corp. (TYO:6857), which supplies chip testing equipment to NVIDIA, declined over 9%.
Tariff Measures and Market Impact
On April 2, President Trump announced a baseline tariff of 10% on all imports, with targeted higher rates:
34% on Chinese goods
24% on Japanese products
25% on South Korean imports
32% on Taiwanese goods
These aggressive tariffs aim to rebalance trade deficits but are expected to significantly raise production costs for companies like Apple and NVIDIA. Analysts warn that these cost pressures could ultimately lead to higher consumer prices and reduced demand for electronics. Meanwhile, suppliers face considerable headwinds, including potential shifts in manufacturing locations and supply chain disruptions.
Technical Perspective
From a technical analysis standpoint, momentum indicators signal that these stocks are in oversold territory. Investors can gain additional insights into this trend by monitoring the Williams %R indicator, which measures overbought and oversold conditions. For real-time technical data, check out the Technical (Williams %R) endpoint.
As global trade tensions continue to reshape the technology supply chain, the significant declines in shares of key Asian suppliers underscore the broader risks faced by the electronics sector. The ripple effects of these tariffs could ultimately impact global technology giants and consumer prices, further intensifying market volatility in the coming months.
