Market Impact
Trump's tariffs, including a 10% baseline and higher rates on specific countries, have led to significant stock market declines for major tech companies, with and Amazon experiencing around 6% drops.
The tariffs are expected to cause higher consumer prices and inflation, with increasing the risk of a US recession to 35%. Tech sectors, especially ecommerce, are anticipated to be heavily impacted.
Sector-Specific Challenges
Apple, heavily reliant on for production, faces the most substantial impact, with 80% of its products made in China. The company has begun diversifying its supply chain but moving manufacturing to the US is costly and time-consuming.
Despite semiconductors being initially exempt from the tariffs, the broader tech industry, including online retailers and consumer device brands, is expected to pass some costs onto consumers, potentially discouraging tech purchases.