Wall Street's favourite analyst Wedbush calls Trump Tariffs 'lottery' for China and 'brutal' for America's tech giants Apple, Microsoft, others

In a scathing critique, Wedbush Securities has sounded the alarm on President Donald Trump’s newly proposed global tariffs, labeling them a potential “economic Armageddon” for the U.S. tech sector . Analysts, spearheaded by managing director Dan Ives, argue that the fallout from these tariffs could dwarf the devastation of historic market collapses like the dot-com bust of the early 2000s and the 2008 financial crisis, threatening to erase a decade of American technological progress.

A Tech Setback of Biblical Proportions
Wedbush’s analysis paints a dire picture: tariffs of 50% or more on Chinese goods and 32% on Taiwanese products could unravel the intricate global supply chains that power the tech industry. The firm predicts a staggering 40–50% spike in electronics prices, with a U.S.-manufactured iPhone potentially retailing for as much as $3,500. Such price hikes could alienate consumers and stall the momentum of the AI-driven “4th Industrial Revolution,” a movement currently led by U.S. giants like Nvidia, Microsoft, OpenAI, Amazon, Alphabet, Palantir, Oracle, and Tesla.

“For the first time in 30 years, the U.S. is ahead of China in AI and this technological revolution,” Wedbush stated. “But in one day, this tariff policy, if enacted, will create an upside-down supply chain, massive costs, major capital expenditure delays due to uncertainty, and slow down U.S. tech innovation.” The firm estimates that tech earnings could plummet by at least 15%, with supply chain disruptions rivaling the chaos seen during the COVID-19 pandemic.

China’s Golden Opportunity
The ripple effects of Trump’s tariff plan extend far beyond U.S. borders. China, already retaliating with its own tariffs, stands to gain a significant competitive edge. Wedbush warns that the policy could hand a “lotto ticket” to China’s tech ecosystem, empowering companies like BYD, Huawei, Alibaba, Tencent, and thousands of smaller players to seize greater global market share. While the U.S. tech sector grapples with higher costs and delays, China could accelerate its own innovation, potentially overtaking America in the race for AI supremacy.

“This isn’t just a stumble—it’s a self-inflicted wound,” Ives remarked, emphasizing that the tariffs threaten to undo years of strategic gains. “China’s tech landscape is poised to capitalize on our misstep.”

A Revolution at Risk
At the heart of Wedbush’s concerns is the AI revolution , a sector where U.S. companies like Apple, Nvidia, Microsoft, and OpenAI have set the pace. The proposed tariffs could choke off access to critical components from China and Taiwan, regions that dominate semiconductor and electronics manufacturing. The resulting uncertainty, coupled with ballooning costs, could force tech giants to scale back ambitious projects, delay product launches, and rethink capital investments.

Analysts fear that the tariffs’ impact would reverberate through Wall Street, with tech stocks -- long a bedrock of market growth -- facing a brutal reckoning. “This is worse than anything we’ve seen in decades,” Ives said, drawing parallels to past crises while underscoring the unprecedented scale of the current threat.

A High-Stakes Gamble
Trump’s tariff proposal, framed as a means to bolster domestic manufacturing and counter foreign competition, has ignited fierce debate. Supporters argue it could revitalize American industry, but critics like Wedbush see it as a reckless gamble that misjudges the tech sector’s reliance on global integration. As the U.S. and China exchange tariff salvos, the world watches to see whether this policy will cement America’s dominance—or hand its rivals the keys to the future.