Trump’s new tariffs lead to $208 billion loss for world’s richest

A wave of losses has swept through the financial markets following the announcement of new tariffs by US President Donald Trump, with the world’s 500 wealthiest individuals losing a combined total of $208 billion. The decision, which introduced broad tariffs on imported goods, caused a dramatic drop in stock values, particularly impacting the tech and luxury sectors.

According to Bloomberg, the loss marks the fourth-largest single-day drop in the Bloomberg Billionaires Index’s 13-year history and the largest since the height of the Covid-19 pandemic. More than half of the individuals tracked in the index experienced a decline in their wealth, with an average drop of 3.3%.

Among the hardest hit were tech giants Mark Zuckerberg, Jeff Bezos, and Elon Musk. Zuckerberg, the founder of Meta Platforms, saw his fortune decrease by $17.9 billion, a 9% drop in Meta’s stock, which had previously been one of the best-performing tech stocks. 

Similarly, Bezos lost $15.9 billion, following a 9% decline in Amazon’s stock, marking the largest drop since April 2022.

Musk’s losses were also significant, with a $11 billion decrease in his wealth as Tesla’s stock fell by 5.5%. Musk’s overall losses for the year have reached $110 billion, attributed to both his controversial role in the Trump administration and issues with Tesla’s supply chain.

Other notable losses included Bernard Arnault, the owner of luxury goods conglomerate LVMH, who lost $6 billion as his company’s stock fell due to the impact of tariffs on alcohol and luxury goods exports. 

Meanwhile, Carlos Slim, the richest man in Mexico, avoided losses, as Mexico was excluded from the list of tariff targets, resulting in a 4% increase in his wealth.

The tariffs also hit companies outside the tech industry. Carvana Co. saw its stock drop by 20%, resulting in a $1.4 billion loss for CEO Ernie Garcia, while Shopify’s Tobi Lutke lost $1.5 billion, with the company’s stock falling 20% due to its reliance on imports.

The European Union is preparing for a 20% flat tariff on all products headed to the US, which is expected to further strain exports of goods like alcohol and luxury items. Tariffs on China also caused losses in the footwear sector, with Huali Industrial Group Co.’s founder, Zhang Congyuan, losing $1.2 billion, and companies like Nike and Adidas seeing sharp declines.