Trade War: The Impact of US and China Tariffs on the Technology Sector

In this edition, Niraj Patel, Chief Equities Strategist at Banco Itaú International, discusses the recent trade tensions between the US and China, which have resulted in reciprocal tariffs and caused a significant correction in stock markets, especially in the technology sector.

Main highlights:

• The Trump administration announced comprehensive tariffs on April 2, exceeding market expectations. China retaliated, leading to further escalation. Despite some exemptions for semiconductors, the sector still suffered a correction due to economic sensitivity and the potential impact of a tariff war.
• Since the April 2 announcements, the "Magnificent 7," considered the largest and most influential technology companies in the world, have lost over $2 trillion in market value. Apple and Tesla shares have fallen more than 20% during this period. Tesla, in particular, faced additional pressure due to its factory in Shanghai and sales in China.
• In the AI field, Meta launched its latest model, Llama 4, while Google introduced the Gemini 2.5 Pro models. Both scored highly and demonstrated complex reasoning capabilities. Meanwhile, Microsoft announced delays in the construction of some of its data centers.
• Startup Colossal Biosciences made a controversial announcement about the "resurrection" of the dire wolf after 10,000 years, generating skepticism among scientists. This development raises questions about the limits of science.
• Looking ahead, the technology sector will release first-quarter results in April, starting with Netflix on April 17. Investors will be watching for the impacts of tariff volatility and potential drops in demand. However, it is still possible to see long-term opportunities amid short-term volatility.

Watch the full video below: