Trump’s Tariffs Could Trigger Tech Industry Collapse, Warns Analyst

Investment analyst Dan Ives from Wedbush Securities believes that the US tech industry could face a major downturn due to tariffs imposed by President Trump.

In an interview with CNBC, Ives explained that the wide-ranging and reciprocal tariffs introduced by Trump are set to have a particularly negative impact on tech companies that depend on Chinese labor and components.

Recently, Trump signed an executive order introducing a 10% tariff on all imported goods entering the US, aimed at protecting domestic manufacturing. This order also includes specific tariffs for certain countries, resulting in a combined 54% tariff on Chinese imports.

Ives pointed out that this move forces US tech giants like Apple to reconsider their operational strategies, as they face the risk of higher production expenses. He warned that the situation could escalate into a severe economic crisis if the tariffs remain, emphasizing that the political rhetoric does not match the complex reality of shifting global supply chains.

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According to Ives, companies with significant exposure to China, including Nvidia and other semiconductor manufacturers, are now experiencing heightened investor anxiety similar to the early days of the COVID-19 pandemic in March 2020.

To cope with rising costs, Ives predicts that tech companies may increase prices, which would ultimately reduce consumer demand. He estimates that if the tariffs persist, the resulting cost increases could lead to a 15% to 20% decline in demand.

Ultimately, Ives argues that consumers will bear the financial burden, as higher costs for goods like iPhones and other electronics will inevitably be passed on to buyers. He suggests that despite debates over tariffs, it will be ordinary Americans who end up paying more for everyday tech products.

Alexander Stefanov