Trump's tariffs "punish" American industries - Could cost the tech sector $139 billion a year
President Donald Trump's trade war could cost the U.S. technology, media and telecommunications industries billions of dollars a year, according to a new report from PwC that analyzes the impact of ongoing tariffs. With the increased duties, especially on imports from China, companies are scrambling to assess financial risks and rethink supply chains.
Total tariffs on the sector could rise to as much as $139 billion a year, according to the report. The analysis looked at last year's U.S. imports and estimated how they would have been affected by the new tariffs on China, along with proposed tariffs on some Canadian and Mexican goods.
The authors point out that while the figure is shocking, it is not entirely unexpected given the size of the industry.
The report identifies computers, networks and electronics as the hardest-hit categories, with an estimated $64 billion in additional costs. This highlights the industry's heavy reliance on Chinese products.
"The level of reliance on the supply chain coming from China is undeniable, and because of that, it is inevitable," the researchers point out.
Some companies have sought to diversify their manufacturing bases since the first Trump administration in anticipation of stricter U.S. trade policies. However, this takes more time.
Companies are now responding to the new tariffs in a number of ways. A small percentage are actively shifting supply chains out of China or reclassifying parts of their supply to avoid the new duties. Meanwhile, the majority are closely monitoring the negotiations and preparing to act.
The authors note that it will take some time for consumers to feel the pressure from these tariffs. Unlike oil price fluctuations, where costs change overnight, consumer electronics and enterprise technology tend to experience delayed price shifts.
"There's no desire to be too reactionary, because the supply chain, even retail, depends so much on stability. We can't have prices that change every day for something that's on the shelf," the analysts explain.
While companies may endure some short-term profit losses, the true impact on consumers may take several months to appear.
However, the impact of these tariffs could extend beyond the tech industry, as most growing industries rely on digital infrastructure. Many companies have integrated large language models into their cloud-based software platforms. As the cost of the artificial intelligence chips used to train these models increases, the consequences could be felt across many sectors.
Poll
31 million euros of public investments in 2 months - The year starts well, the disbursement of funds for projects increases significantly
The year 2025 has started well in terms of the progress of public projects in the country. According to official data from the Ministry of Finance, in the......
Record EBRD financing in Albania - 203 million euros in 2024 alone. Infrastructure the biggest beneficiary
Last year, the European Bank for Reconstruction and Development (EBRD) financed projects worth 203 million euros in Albania, marking the highest level of......
Trump signs executive order to dismantle US Department of Education!
US President Donald Trump signed an executive order on Thursday calling for the dismantling of the US Department of Education. The move fulfills a promise......
Over 1,300 flights cancelled at London airport as fire at electrical substation causes power outage
A fire at an electrical substation in London has caused a power outage, forcing Heathrow Airport to close for a full day. At least 1,350 flights will be......
The main event of the year for businesses - AIDA organizes 'Match Maker Albania 2025'!
AIDA announces that it will organize the Match Maker Albania 2025 event, with the support of the Ministry of Economy, Culture and Innovation, which is an......
List of National Projects, new criteria are defined - Concession proposers must submit feasibility studies in advance
New public investment projects must meet several additional criteria to be included in the Unique List of Projects of National Importance. Referring to the......
Global competition in exports - China has the hegemony. Since 2010, it has doubled its presence in the world market
Global competition for a dominant position in world exports has intensified since the pandemic. At the forefront of the race are China, the US and Germany.......
How did this week end for the foreign exchange market? – The Pound weakens while the Franc gains points!
The US dollar started the day at a stable rate, being bought today at 91.1 lek and sold at 92.3 lek compared to yesterday according to the local exchange......
