11:19 AM EDT, 04/04/2025 (MT Newswires) -- Technology companies may be heading into "dark days" as President Donald Trump's new tariffs could reduce earnings by at least 15%, making trade negotiations a pressing priority, Wedbush Securities said in a Friday note.

Trump reportedly said Thursday he is willing to consider tariff reductions if other countries make "phenomenal" offers, a day after announcing duties on imports from several countries, including additional tariffs on China. The Asian country, where almost all of Apple's ( AAPL ) iPhones are assembled, has retaliated with a 34% tariff rate on American goods.

"If these (US) tariffs went into place at current form, overall tech earnings would come down 15% at least, the supply chain will be a Rubik's Cube rivaling Covid days, and the economy would go into a recession/stagflation," Wedbush analysts, including Daniel Ives, said. "We assume tariff negotiations start now otherwise dark days are ahead for tech...and US consumers pay the price for this."

Earlier this year, Washington imposed tariffs on China, alleging "intellectual property theft, forced technology transfer, and other unreasonable behavior."

The tariffs imposed on China and Taiwan could boost prices for electronic devices in the US by 40% to 50%, Ives said.

Wedbush said it would take four to five years to build a manufacturing facility in the US, where the cost of labor is "unrealistic." IPhones made in the US could cost $3,500 per unit, or more than triple the current price, according to Ives.

"The concept of taking the US back to the 1980's 'manufacturing days' with these tariffs is a bad science

experiment that in the process will cause an economic Armageddon in our view and crush the tech trade, (artificial intelligence) revolution theme, and overall industry in the process," Ives said.

Shares of Apple ( AAPL ) were down 3.3% intraday Friday after a 9.3% decline on Thursday. Nvidia ( NVDA ) fell 6.3% following a 7.8% slide.

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