Boardroom breaks down the high-level news you need to know about recent tariff changes and how they will impact Big Tech companies and products in the US.
What’s really going on with tariffs, Big Tech stocks, and the supply chain shuffle this week?
The U.S. tech sector is navigating a complex landscape shaped by new tariffs, supply chain disruptions, and market volatility. Big Tech stocks seem to be getting hit the hardest, with companies like Apple and Nvidia experience increased volatility as they scramble to adapt their manufacturing strategies and international supply chains to account for rising costs.
Here’s a brief breakdown of the current situation and its implications.​
Subscribe for the biggest stories in the business of sports and entertainment, daily.
Tariffs Take Center Stage
President Donald Trump’s recent tariff announcements have introduced significant uncertainty, especially across the tech industry.
More specifically, things between the U.S. and China have gotten quite spicy again on the trade front. The U.S. administration significantly ramped up tariffs on Chinese imports, reaching a total rate of 145% by April 10, CNBC reports. China, as you’d expect, isn’t just sitting back. They’ve retaliated, announcing just today, April 11, that they’re hiking tariffs on U.S. goods significantly, up to 125%.
As the new 145% tariff on Chinese imports remains in effect, President Trump paused new reciprocal tariffs on most other U.S. trading partners for 90 days. The pause appears to be a response to financial market instability and rising concerns from stakeholders. For tech companies, which source much of their manufacturing materials from China, the announcement provided little relief. Apple and Nvidia’s stock fell roughly 4% and 6%, respectively, following Trump’s initial tariff announcement. The Magnificent Seven stocks rebounded momentarily after the tariff pause was announced. On Wednesday, April 9, Apple experienced its best single-day stock performance since January 1998, surging over 15%. However, analysts caution investors to be vigilant amidst the volatile market, which continue to swing amidst uncertainty.
The tech industry is at a crossroads, balancing immediate responses to tariff pressures with long-term strategic shifts. While some companies are absorbing costs or passing them on to consumers, others are investing in diversifying their supply chains. The full impact of these changes will unfold over the coming months, with potential ripple effects across the global economy.​
What This Means for Your Tech Gadgets
The financial implications of these higher tariffs are substantial. A PwC analysis estimates that these tariffs could cost the U.S. tech industry up to $139 billion annually, with computer, networking, and electronic equipment being the hardest hit.
Companies facing higher import costs have a choice: absorb the cost (which eats into their profits) or pass it onto consumers. Often, it’s a bit of both, but significant cost increases usually mean higher sticker prices.
In response to the impending tariffs, Apple reportedly airlifted approximately 600 tons of iPhones—around 1.5 million units—from India to the U.S. The company is taking big strides to mitigate the impact of new trade policies on its operations and supply chain, especially as estimates of a “Made in the USA” iPhone run as high as $3500. Microsoft and Google are following suit by bringing in large consumer electronics shipments by air, while companies like Samsung, Lenovo, and Acer are reducing component and product orders in the US and increasing efforts in international markets.
These adjustments are short-term solutions to long-term challenges. Relocating production facilities is a time-consuming and costly process riddled by complex local economics, but it is a decision companies may have to consider in the coming months. Despite these fluctuations, some analysts remain optimistic about the resilience of tech companies, particularly those involved in AI and cloud computing.
We’ll continue to monitor the official rollout of the tariffs and their corresponding impact on the expansive world of big tech.
Read More:
Building IP Empires: How Video Game Adaptations Are Taking Over Screens
LOVB CEO Katlyn Gao Wants to Build the NBA of Volleyball
Ally is All In on Women’s Sports with WNBA, Paige Bueckers Deals
The WNBA’s Looming CBA Talks Shake Up Draft Plans
‘Black Mirror’ Returns to Dark Tech Roots in Season 7
