Donald Trump's trade war with China significantly affected various tech companies, despite their previous support for his campaign. Companies like Tesla, Nvidia, and Amazon experienced substantial financial losses as a result of the tariffs. Elon Musk's criticism of Peter Navarro, Trump's senior trade advisor, highlights the strained relationship between the administration and previously supportive businesses.
Nvidia's decision to invest in AI infrastructure in the US resulted in restrictions on selling AI chips to China, costing the company $5.5 billion. Amazon faced increased costs for goods due to the tariffs, creating uncertainty for its third-party sellers. Meta, despite its support for Trump, didn't gain any protection from the antitrust case it's facing.
Even initial tariff exclusions for certain electronics were short-lived, as Trump stated that nobody was getting off the hook, resulting in uncertainty in the pricing of goods like iPhones.
The stock prices of these tech companies have suffered significantly, driven by investor concerns about re-emerging inflation and the potential for a US recession. Elon Musk, Jeff Bezos, and Mark Zuckerberg, major Trump supporters, have collectively lost over $80 billion since the initiation of these trade policies. The article questions the return on investment for these companies' political contributions.