US President Donald Trump’s global tariffs have had a significant impact on the tech industry, with major companies like Apple and Nvidia seeing their stock prices drop due to the imposition of taxes on foreign-made goods.
Semiconductors, which are essential components in many electronics, were initially exempt from the tariffs. However, Trump announced that tariffs on semiconductors will be imposed “very soon.” This move is seen as a step towards creating a level playing field for domestic manufacturing.
The impact of these tariffs has already been felt by companies like Nintendo and Klarna, which have delayed or canceled planned investments in the US market due to concerns over the potential costs. Experts believe that the increased prices caused by these tariffs could lead to slower growth and higher inflation rates.
Analysts estimate that it will take several years for some companies, such as Apple, to scale up their manufacturing operations in the US. Meanwhile, domestic manufacturers like Intel are expected to face increased costs due to the import of foreign-made hardware.
The US has a history of relying on international supply chains for essential manufacturing, but Trump’s move aims to create a more competitive industry. However, economists warn that this could lead to higher prices for consumers and reduced competitiveness for US companies in the global market.
Federal Reserve chair Jay Powell has cautioned that these tariffs could stoke inflation and slow down economic growth, raising concerns about unemployment and interest rates.
Source: https://gizmodo.com/president-trump-says-chip-tariffs-coming-very-soon-2000585242