The Trump administration has announced radical rates-varied-varied from 10% to 41% of goods from almost 70 countries, which will come into force on 7 August. Many technology products, including semiconductors, electronics and AI-related hardware, are among the affected items.
Global trade is no longer dominated by a single super power, because influence is increasingly distributed over various important regions. “These rates forcing countries to re-contract their trade, capital and strategic priorities,” says Nigel Green, CEO of Devere Group, an independent financial advisory and assets management organization. “The world is moving on several centers of economic power and influence.”
So how will Trump’s trade war influence the technology sector?
1. Half -guided
Two of the trading partners who were the target of Trump – Taiwan and the EU rates – could significantly influence the semiconductor prices, while the US is working on the production of AI chip entirely on the coast. The EU is confronted with a rate of 15% on items, including medicines, cars and semiconductors. Taiwan, that produces more than 90% From the world’s high -tech chips is hit with a rate of 20%. These increases are expected to increase the high prices for GPUs and other chips.
China is particularly absent in the most recent high Tariff list due to continuous negotiations. However, the already existing rate of 30%, since mid -May, remains. This is a problem since China checks around 95% From the global delivery of important minerals such as Gallium and Germanium – both vital to the production of semiconductors.
2. Smartphones
China is an important supplier of smartphones for the US, including many of the iPhone factories from Apple. But months of uncertainty as a result of the current trade conflict, manufacturers have encouraged to move China’s supply chains.
India recently emerged as a leading supplier of smartphones for the US, Catch up China Last week. It is now good for around 44% of the import of smartphones, an increase of only 13% a year earlier. That momentum, however, stands for a setback, because Trump has imposed a rate of 25% on India.
Vietnam, another important player – especially for the Samsung smartphone production – is also influenced, now confronted with a rate of 20% according to the new rules.
3. Laptops and tablets
Large quantities of technical hardware, including laptops and tablets, are influenced by the new rates. Earlier this year, the Consumer Technology Association warned That such rates can reduce purchases in this category by a maximum of 68%. Although that projection was based on tariff percentages of more than 100%, even smaller increases will probably dampen demand by increasing consumer prices.
PC manufacturers usually buy from China, Vietnam or Mexico. Mexico has received an expansion of 90 days to negotiate a deal and a result that could be crucial for the sector.
4. Games consoles
About 86% From American Videoga Consoles are imported from China, making the industry very vulnerable to every fall-out of trade negotiations in the US-China. Vietnam, another large hub, is now subject to a rate of 20%, which could further increase consolor prices.
Nintendo and Sony also import some console components from Japan, but with Japan with a relatively lower rate of 15%, the impact there can be slightly less serious.
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