President Trump’s comprehensive global tariffs shook the stock market since it was announced on Tuesday, and almost every major technology company is a double -digit line. However, as the semiconductors, Taiwan and chips from other countries were exempted, it was largely saved from an impact. Most of the electronics sold in the United States are strengthened by chips in Asia, ie tariffs will have a significant impact on prices. However, Trump said on Thursday that semiconductor tariffs will be applied to a White House press pool “very soon”.
Already, the tariffs on foreign products have caused Nintendo to announce a delay in US pre -orders for Switch 2, while evaluating the potential impact of tariffs. And Klarna, now the buyer’s initiative has made a memory to allow customers to pay for food delivery in installments, delayed the planned public offering Friday. Global economic uncertainty probably hurts the business case to finance chipotle burritos through zero -interest, unsecured loans.
President Trump threatened to apply large tariffs to semiconductors abroad, as the United States aimed to build more important technology at home. Chinese Closing Shanghai in 2022 On a COVİD-19 epidemic, he emphasized the risk of relying on long, international supply chains for basic production. TSMC, one of the major chipset manufacturers who make products such as Nvidia and Apple, has committed more than $ 100 billion to open production and RAR -E facilities in the United States, but the scaling takes a long time. Dan IVES, Wedbush Securities Analyst, estimated Moving ten percent of the manufacturing to the US will take three years and 20 billion dollars
If President Trump is trying to make the United States more competitive in manufacturing, it makes sense to include chips in tariffs. Domestic producers such as Intel rely on foreign equipment to build their chips locally, and the tariffs in place, this hardware will cost more expensive, and then the chips will not compete for those who are built abroad.
Tom’s hardware detailed How to increase chips prices under new tariffs:
For example, if a NVIDIA AI GPU has a 25% tariff in which the company sells 50,000 dollars with a gross profit margin, the NVIDIA will have to declare $ 12,500 and to pay $ 3.125 import tax. Such a tariff will either damage Nvidia’s margins or make GPUs more expensive for buyers in America. For Elon Musk’s new generation data centers Set it to contain one million GpusThis means an additional cost of $ 3,125 billion.
President Trump said that the tariffs given on Wednesday aim to create a flat playground for production. And although it makes sense to move some of the manufacturing to the United States, it takes years to do it. Domestic products will still be more expensive than alternatives abroad. Labor is expensive in the United States, and workers’ bodyguards and regulations contribute to this burden. America has been a service economy for a long time; People in the United States do not want to work hard.
Some sectors such as chipset may be revived to the United States, as they are higher margins than commodity goods such as toast or shoes. However, it is unclear whether physical products made in the United States will compete globally. The world’s largest economy is to design products, write code – and leave the elbow work to other countries. Even if the production of durable goods returns to America, Most will be automaticLike Tesla’s optimus robot. Amazon continued to invest in a big investment to automate its factories.
Under the tariffs, it can envision to make Americans who pay more for lower quality goods, especially the new tax to low -income Americans. And for businesses, companies can make us less competitive because their costs will be higher. And this is at a time when China progresses in fields like AI and automotive.
Many economists believe that a budget deficit currently encountered by the United States means that the country spends more imported goods than exports. However, there are other ways to balance books that will not harm Americans in this process, such as negotiating drug prices.
Federal Reserve Chair Jay Powell He said it on Friday He warned that Trump’s tariffs would probably be “higher inflation and slow growth ve and that unemployment may increase after a few months of power. However, he added that the Federal Reserve will not immediately reduce interest rates and this may reduce the effect. In other words, Powell does not plan to save Trump despite the widespread criticism of tariffs between the business world.
