In wake of new tariffs by Trump, there is a new outlook for major US tech companies. Although US tech companies that depend on their manufacturing and supply chain in China and Taiwan will be hit hard, there is a new golden opportunity for the US economy to adapt and benefit from the tariffs. 

What Trump hopes will happen in response to the recent tariffs would benefit the US greatly. He has stated that he hopes the tariffs will increase manufacturing back into the US. Apple, one of the biggest tech companies in the world, already announced a major expansion in Texas, where they are investing billions of dollars into new chip production in Houston. Other major companies like Intel and Micron have recently made historic investments into US based semiconductor manufacturing with new fabrication plants in states like Arizona, Texas, and Ohio. According to Forbes, the US relies on foreign manufacturers for 80% of its chip supply— 80%!! By putting major tariffs on foreign countries, major tech companies based in the US will look to increase the manufacturing they do in the US to avoid the excessive costs that will occur if they continue to heavily rely on foreign countries. 

Furthermore, automakers such as Tesla are increasing their battery production in the US as they look to reduce reliance on Chinese imports. With that being said Tesla and Ford will see its EV production costs increase because they still import most of their lithium ion batteries from foreign countries. But that’s the upside of the tariffs, major companies are bringing their production and manufacturing hubs back into the US. 

Trump’s tariffs are slowing the United States legacy of globalization and instead looking to rebuild the country’s economy itself. The tariffs indicate that Trump is looking to build a much more self-sufficient industry and to minimize US reliance on foreign countries. Although there have been early indicators that the tariffs are accomplishing the goal, there is a long way to go, and as evident in the market, the transition will not be easy. 

Because of the new tariffs, AI chips made by Nvidia and AMD will become more expensive as Nvidia relies on Taiwan Semiconductor Manufacturing Company (TSMC) for its production. Nvidia depends on its production of cheap and foreign made data center equipment. The tariffs will open the door for US tech based companies to move their manufacturing hubs back to the US or face the tariffs. If said company decides to still rely on foreign manufacturing, they will either have to raise prices or take the losses. The losses that a company will take if they decide to stay foreign are projected to be heavy. 

However this will benefit US based hardware manufacturers like Dell because they manufacture in the US. Junior Benny Moosberger said, “I am excited to see the outcome that the new tariffs will have on the tech industry.”