Wall Street Warns of “Tariff Armageddon” as US-China Trade Tensions Hit Big Tech

By Evans Momodu
Published 22:02


A leading analyst warns that US consumers and Big Tech will soon face severe impacts from escalating tariffs on China, calling the trade war fallout “economic Armageddon.”

Consumers and corporations alike may soon face the full economic brunt of escalating trade tensions with China, according to Dan Ives, managing director and senior equity analyst at Wedbush Securities.

In a stark note to investors, Ives described the unfolding scenario as an “economic tariff Armageddon unleashed by Trump,” warning that the fallout will be felt widely and deeply across the US economy.

Ives points to the self-inflicted instability created by the China-US tariff standoff, stating that it has “turned the corporate capital expenditures world upside down,” with massive implications for both investment strategies and supply chain continuity.

“The uncertainty introduced rivals that are of the COVID-19 era,” Ives writes. “We’re witnessing a systemic price shock that will directly impact the everyday costs borne by US consumers—with no clear resolution in sight.”

The analyst also sounded the alarm over the impact on the technology sector, particularly the “Magnificent 7”: Apple, Alphabet, Amazon, Meta, Microsoft, Nvidia, and Tesla. These companies, many of which have significant manufacturing exposure to China, face severe risk as supply chains become strained and production costs rise.

Apple, which relies on China for the assembly of roughly 90% of its iPhones, is especially vulnerable. “The tech supply chain has had its heart and lungs ripped out by these tariffs,” Ives noted, adding that viable alternatives to Chinese production are minimal to nonexistent in the short term.

While negotiations could help ease tensions, Ives emphasized that “China holds a lot of cards in this game of poker”, suggesting that any resolution will require careful diplomacy and strategic compromise.
Source: QZ.com