Under President Donald Trump's new tariff policies, US technology companies are facing significant challenges with nowhere to escape. The Nasdaq 100 Stock Index has experienced a 16% decline over the past six weeks, with chipmakers particularly hard-hit. Major players like Apple Inc., Nvidia Corp., and Broadcom Corp., which rely on supply chains from Asia, are feeling the impact of tariffs imposed on countries like China, Taiwan, Vietnam, and India. This situation presents a dilemma for these companies: either raise prices, risking consumer backlash, or absorb the extra costs, leading to reduced profits.

Investors have responded swiftly to the news, causing substantial drops in company valuations. For example, Apple shares plummeted 9.3%, erasing billions in market value. The tech sector, which was thriving until recently, has experienced significant losses, with chip-related companies hit particularly hard.

While software makers have seen more modest declines, the overall tech industry has been shaken by the uncertainty created by the tariffs. The once-booming Nasdaq 100 has faced significant setbacks, prompting investors to shift towards more defensive sectors amid concerns over a potential economic downturn and a slowdown in AI infrastructure spending.