Trump’s 100% Tariff Threat on China Wipes Out $770 Billion From Tech Giants. Nvidia, Amazon, and Tesla lead the steepest single-day losses since April; crypto market also reels amid investor panic
BY PC Bureau
October 13, 2025: Major U.S. technology stocks suffered their sharpest one-day losses in nearly six months last week after President Donald Trump announced plans to impose 100% tariffs on all Chinese imports and sweeping export controls on critical software. The move triggered a massive selloff across Wall Street, wiping out more than $770 billion in market capitalization from the biggest tech firms.
According to CNBC, shares of Amazon, Nvidia, and Tesla each plunged around 5% during trading on October 10, dragging down the broader market. The Nasdaq Composite Index tumbled 3.6%, while the S&P 500 fell 2.7% — the worst performance for both indices since April, when Trump first threatened “reciprocal” duties on U.S. trading partners.
The selloff extended into after-hours trading, with several stocks dropping an additional 2% as investors reacted to the White House’s latest escalation in its trade war rhetoric.
🚨🇺🇸🇨🇳 TECH MEGACAPS LOSE $770 BILLION AS TRUMP THREATENS 100% CHINA TARIFF, SOFTWARE EXPORT CONTROLS
Amazon, Nvidia, and Tesla each dropped around 5% Friday as tech’s trillion-dollar companies lost $770 billion in market cap following Trump’s threat of a 100% tariff on China… https://t.co/dfAN0bWnxC pic.twitter.com/5vyK4maSey
— Mario Nawfal (@MarioNawfal) October 11, 2025
Trump Declares ‘Economic Retaliation’ Against Beijing
In a post on Truth Social, President Trump said the U.S. would impose a 100% tariff on Chinese goods, starting November 1, accusing Beijing of “predatory” and “aggressive” trade practices. He also announced upcoming export controls on “any and all critical software,” a move analysts say could target China’s access to advanced AI tools, chip design programs, and cloud computing infrastructure.
“China has taken advantage of American workers and companies for too long,” Trump wrote. “Starting November 1, we will impose 100% tariffs and restrict the export of critical technologies. America will no longer tolerate economic aggression disguised as trade.”
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The statement sent shockwaves through global financial markets, reviving fears of a full-scale trade war reminiscent of Trump’s first term.
Nvidia’s Record-Breaking Loss
Among the hardest-hit was Nvidia, whose stock crashed nearly 6%, erasing close to $229 billion in market value — the largest single-day decline ever recorded for the company. Nvidia, which recently became the first firm to cross a $4.5 trillion market cap, designs the advanced graphics processing units (GPUs) that power artificial intelligence systems around the world.
Analysts said Trump’s comments about restricting exports of “critical software” raised concerns about potential limits on AI training and GPU availability, prompting heavy institutional selling.
“Nvidia’s valuation has been extremely sensitive to policy headlines,” said Lori Calhoun, a senior market strategist at Goldman Sachs. “Even a hint of export control can wipe hundreds of billions off its cap because the AI ecosystem is globally interlinked.”
Amazon, Microsoft, and Tesla Also Bleed
Amazon lost approximately $121 billion in value during Friday’s trading, wiping out its gains for the year and pulling its 2025 performance into negative territory. The company’s cloud computing division, Amazon Web Services (AWS), rents out GPUs to AI developers — a business directly tied to Nvidia’s supply chain.
Microsoft also suffered a steep decline, with its market capitalization shrinking by $85 billion. The tech giant spends heavily on infrastructure for its Azure cloud network and partners with OpenAI, which relies on Nvidia chips for its operations.
Tesla, meanwhile, saw its stock fall 5.2%, erasing $71 billion in market value. The company had unveiled new lower-priced electric vehicles earlier in the week, but the tariff announcement overshadowed its product launch. Analysts fear the trade measures could disrupt Tesla’s component supply chain, much of which depends on Chinese manufacturing.
Alphabet, Google’s parent company, lost 2%, while Meta Platforms dropped almost 4%, as tech investors moved into safer assets amid uncertainty over the scope of the tariffs.
AI Firms Brace for Policy Shock
The proposed export controls on “critical software” are widely interpreted as targeting China’s access to AI and high-performance computing technologies. While details remain unclear, U.S. chipmakers and cloud service providers are expected to face tighter scrutiny over their international partnerships.
OpenAI, which runs its popular ChatGPT platform on Microsoft’s cloud servers using Nvidia GPUs, remains largely unaffected for now. The company said this week that ChatGPT now has over 800 million weekly users worldwide. In September, it launched Sora 2, a video creation app that integrates generative AI and cinematic editing tools.
Still, analysts warn that sustained geopolitical friction could slow innovation. “Any disruption in the AI supply chain affects everyone — from chip designers to startups building models,” said Dan Ives of Wedbush Securities.
Bitcoin Leads Crypto Market Meltdown
The market shock extended beyond equities. Bitcoin slumped 8.4% to $104,782 on Saturday, leading a $19 billion selloff across the cryptocurrency sector.
According to Coinglass, over 1.6 million traders were liquidated within 24 hours, with nearly $7 billion worth of positions wiped out in under an hour. Other major cryptocurrencies, including Ethereum and Solana, fell between 6% and 9%, as risk-averse investors pulled funds out of volatile digital assets.
Analysts attributed the crash to fears that Trump’s policy shift could tighten liquidity, strengthen the U.S. dollar, and further restrict Chinese participation in global crypto mining and exchange operations.
Market experts say volatility could continue into next week as traders await more details on the tariff plan. “This is not just a symbolic move. If implemented, it will reshape global tech supply chains and trade flows,” said Mark Zandi, chief economist at Moody’s Analytics.
Meanwhile, Asian markets are expected to react sharply when they open Monday, as Chinese tech and manufacturing stocks brace for potential retaliatory measures from Beijing.
As of Friday’s close, the combined loss of the ‘Big Seven’ — Apple, Microsoft, Amazon, Nvidia, Meta, Alphabet, and Tesla — surpassed $770 billion, the largest single-session value erosion since the 2022 tech rout.
Trump’s new tariff threat marks a dramatic escalation in U.S.-China trade tensions and has rekindled fears of a second tech decoupling. With the world’s largest chipmaker, cloud providers, and AI innovators caught in the crossfire, investors are bracing for a turbulent final quarter of 2025.
