U.S. tech giants are stockpiling Chinese-made components
According to Nikkei, Microsoft, HP, Dell and other major U.S. technology companies are actively preparing for Trump’s tariff policy and increasing the procurement of Chinese-made parts. Among them, Microsoft has asked suppliers to prepare more components for their cloud server infrastructure in November and December, and to speed up the production of accessories for Xbox game consoles and the assembly of Surface notebooks.
At the same time, HP and Dell are also in discussions with suppliers to produce more components in November and December. The move is aimed at reducing the cost pressure that may be caused by Trump’s tariff policy and ensuring that businesses can operate normally.
U.S. business executives are worried about Trump’s tariffs
Trump’s tariffs have sparked concerns, with U.S. business executives saying that if tariffs are implemented, they will have to pass on the costs to consumers. The CEO of Columbia Sportswear admitted that the imposition of tariffs will lead to higher commodity prices, and the burden on American consumers will increase.
Corey Barry, CEO of Best Buy, a U.S. consumer electronics retailer, pointed out that Trump tariffs will push up U.S. consumer prices, and personal electronics may become more expensive. A study by the National Retail Federation also showed that if the new tariffs were implemented, American consumers could lose as much as $78 billion in annual spending power.
Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation (NFR), said retailers rely on imported goods and manufacturing components in order to offer a diverse and affordable range of goods. The imposition of import tariffs will increase the financial burden on low-income households, as tariffs will eventually be passed on to consumers, leading to higher prices.
Exorbitant tariffs are detrimental to cross-border trade
In the context of globalization, cross-border trade is of great significance to businesses. Companies such as Microsoft, Hewlett-Packard, and Dell have said that as global companies, they prefer simple cross-border trade methods. Against this backdrop, Trump’s tariff policy has undoubtedly brought great challenges to businesses.
In the face of Trump’s tariff threat, US tech giants have stockpiled Chinese-made components to reduce potential cost pressures. However, once the tariffs are implemented, consumers are likely to face upward price pressure. In this trade war, I am afraid that no one is the winner.
