New tariffs introduced by Donald Trump have created significant fluctuations in the Stock market. In contrast, billionaire entrepreneur Elon Musk has advocated for a zero-tariff approach, while investor Mark Cuban predicts that Trump’s plan will ultimately prevail in this debate.

Market Overview: On Friday, stocks of major tech companies, collectively referred to as the “Magnificent 7” — including Apple Inc. AAPL, Microsoft Corporation MSFT, Amazon.com, Inc. AMZN, Alphabet Inc. GOOG GOOGL, Meta Platforms, Inc. META, Nvidia Corporation NVDA, and Tesla Inc. TSLA — experienced substantial declines attributed to the ongoing trade war resulting from Trump’s tariffs.

Apple experienced a sharp drop of 7.29%, closing at $188.38, while Microsoft fell by 3.56% to $359.84. Amazon shares decreased by 4.15%, and Alphabet recorded drops of 3.40% (Class A) and 3.20% (Class C).

Related Insights: Jim Cramer Voices Support for Tariffs, Critiques Free Trade

Other major players suffered even more severe losses. Meta’s stock dropped 5.06% to $504.73, Nvidia fell by 7.36% to $94.31, and Tesla saw a significant drop of 10.42%, closing at $239.43, according to data from Benzinga Pro.

In the midst of this market turbulence, Musk expressed his support for a zero-tariff future, advocating for a free trade zone between Europe and North America as beneficial for both global markets and consumers.

This statement came during a talk hosted by Italian Deputy Prime Minister Matteo Salvini at ‘The League Congress,’ where Musk shared his views on international trade.

After Musk’s remarks, Cuban took to X, previously known as Twitter, to comment on the polarized perspectives regarding trade policy. He stated, “Free Trade @elonmusk vs Full Tariff @realDonaldTrump and @howardlutnick is going to be fascinating to watch. They are the exact opposite sides of each other.” Cuban acknowledged the potential benefits of zero tariffs for consumers but warned that implementing full tariffs could generate tax revenue at the cost of inflation.

He concluded his thoughts by expressing confidence that “my money is on @realDonaldTrump winning.”

Significance of the Situation: Last week, Trump unveiled new tariffs, including a 20% tax on goods imported from the EU. Consequently, products from Europe are set to become pricier for American consumers, which could further exacerbate inflation and heighten tensions with trading partners.

Despite the market’s sharp declines over two days, Trump reiterated his support for the tariffs on Saturday, remarking on Truth Social that nations like China have treated the U.S. unfairly for far too long. He framed the tariffs as part of an “economic revolution” and urged Americans to remain resilient, promising a historic outcome that would contribute to his “Make America Great Again” agenda.

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Disclaimer: This article was partially produced using AI tools and has undergone review and publication by Benzinga editors.