ProShares UltraPro QQQ (TQQQ), a leveraged ETF that aims to deliver three times the daily performance of the Nasdaq-100 Index, plummeted 5.01% in pre-market trading on Friday. This sharp decline comes as the broader technology sector faces a significant selloff triggered by President Donald Trump's announcement of a new, harsh tariff regime.

The tech-heavy Nasdaq 100 Stock Index has already shed $1.4 trillion in market capitalization following Thursday's slump, with the index down 16% over the past six weeks. Given TQQQ's triple-leveraged nature, it's particularly sensitive to these market movements, explaining its steep pre-market drop. The so-called "Magnificent Seven" tech stocks have been hit even harder, declining by 20% during the same period.

At the heart of this tech sector turmoil are Trump's new tariffs, which are being described as the harshest in a century. China and Taiwan, global hubs for chip and high-tech manufacturing, are facing levies of 54% and 32% respectively. Even emerging production bases like Vietnam and India are looking at taxes of at least 26%. This situation poses a significant challenge for major tech companies like Apple, Nvidia, and Broadcom, which rely heavily on overseas manufacturing and complex supply chains. The tariffs leave these companies with the difficult choice of raising prices or absorbing costs, both of which could negatively impact their financial performance and, consequently, their stock prices.