Technology stocks are once again under pressure as the Trump administration revives tariffs that focus on global imports. For North American tech giants, many of which depend on complex global supply chains and Chinese manufacturing, the renewed trade friction is creating ripple effects that are reshaping earnings forecasts, production strategies and investor sentiment.
While some Canadian investors may feel insulated, those with exposure to U.S. tech giants through exchange-traded funds (ETFs) or through direct stock holdings may already feel the impact.
From Apple (AAPL) to Snap (SNAP), tariff-driven volatility is hitting the same high-growth names that often lead the market during boom times and drag it down in corrections. As a result, several large U.S.-based technology companies are navigating turbulent markets due to the re-imposition of Trump-era tariffs, particularly those with supply chains tied to China or that depend on global markets for sales.
For Canadian investors looking to minimize tech sector beta — a stock’s volatility or risk in relation to the overall market — here’s what you need to know.
1. Apple
Apple (NMS:AAPL)
Apple (AAPL) reported a US$900 million hit in fiscal Q2 tied to tariffs, despite ongoing efforts to diversify manufacturing into India and Vietnam. Apple’s heavy dependence on Chinese suppliers continues to leave it vulnerable to future policy shifts. Following the earnings release, Apple shares dropped approximately 4% in after-hours trading.
2. Amazon
Amazon (NMS:AMZN)
Amazon (AMZN) has warned of higher prices and weaker sales, citing increased tariff-related costs and falling consumer demand, especially from Chinese advertisers.
3. Qualcomm
Qualcom (NMS:QCOM)
Although Qualcomm’s (QCOM) products remain exempt from current tariffs, the chipmaker issued a Q3 forecast below Wall Street expectations, citing broad uncertainty and declining smartphone demand.
4. Snap Inc.
Snap (NYQ:SNAP)
Snap (SNAP) saw its stock plunge 14% in after-hours trading after reporting disappointing Q1 earnings. Much of its ad revenue relies on Chinese companies — spending that has declined significantly due to trade tensions and tariff restrictions.
Pro tip: This is particularly relevant to Canadian retail investors exposed via ETFs or U.S. tech portfolios.
5. Lucid Motors
Lucid (NMS:LCID)
Electric vehicle manufacturer Lucid (LCID) expects an 8% to 15% increase in overall costs due to tariff implications. Still, the firm is holding to its production target of 20,000 units for 2025, though macroeconomic uncertainty and regulatory changes are putting pressure on operations.
Pro tip: Does this form signal an emerging opportunity or risk? Watch EV cost trends in Canada to determine and take action.
Impact on Canadian tech firms
While Canadian tech companies have not been explicitly identified in reports, the broader business community is feeling the pressure. Firms are grappling with higher costs and are increasingly diversifying export strategies away from U.S. markets in favour of Europe and Asia.
Broader industry disruption
The reintroduction of Trump-era tariffs, including a baseline 10% tariff on all imports, with higher rates on goods from countries like China, has rattled supply chains and increased manufacturing costs across the tech sector. Many companies are reevaluating their supplier networks, shifting production to Mexico, Southeast Asia or the U.S.
Investor insight: These changes may favour North American chip manufacturers, automation firms and logistics providers — potential growth sectors to watch for Canadian investors.
What this means for Canadian investors
For Canadian consider the following:
ETF exposure: Most Canadian tech-focused ETFs hold U.S. companies such as Apple, Amazon and Qualcomm. Tariff-related volatility may affect performanceo of these firms. To minimize this volatity, consider adjusting your portfolio to reflect your risk tolerance.
Currency factor: As the U.S. dollar strengthens during trade tensions, Canadian investors could see gains or losses depending on currency hedging in their holdings.
Diversification strategy: The current geopolitical climate reinforces the need for global diversification and sector balancing — particularly for tech-heavy portfolios.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
