American technology firms feel tcs from fares to China

Dina Gazorian was engaged in business only a year when the trade policy of the first term of President Donald Trump has sent her campaign to the tail spin.

It was 2019, and its California firm, Austere, just agreed to put some big American retailers with its high-class audio and video accessories that are largely produced in China.

Trump then introduced the interpreted tariffs in China, and at night Deena turned out to be 25% of the surcharge for each cable and the component it was imported – compared to zero earlier.

She was forced to absorb costs and thought for a while would confuse.

“I literally thought I was going to start and finish the business in less than a year,” she says. “I spent all this time, money and effort, and to have something like this pity, you were shocking.”

The firm stretched out, but like many other US enterprises, it will now be in a strange similar situation.

Since his return to his post in January, Mr. Trump raised tariffs for all goods imported from China by 20% and filed taxes of 25% on Canadian and Mexican products, only detaining some of them until April.

The President states that he wants to make these countries to stop the flows of illegal drugs and migrants to America, return more production to the US and decide what he sees as an unfair trade imbalance.

But responsibilities are much broader than the past time they gradually stopped and many products were offered by exceptions.

Such goods such as smartphones, desktops and tablets are now applied for the first time, while the taxes on others have risen higher.

“American importers should pay these taxes, not exporters,” says Ed Britzvo, Vice President of International Trade at the Consumer Technology Association (CTA), North American trade body, representing more than 1,200 technology firms.

“American business and consumers will suffer.”

Businesses such as Ms Gazaria are particularly exposed. China is still a number one electronic supplier in the US, with imports worth $ 146 billion ($ 112 billion) in 2023, According to official data.

Meanwhile, 87% of consoles imports came from China that year, 78% smartphones, 79% laptops and tablets and two -thirds of monitors, Says CTA.

While many US companies, such as Austere, diversified their supply networks from China, because the first term of Trump, countries such as Thailand, Taiwan and Vietnam, still do not offer the same production and experience.

At the same time, the US president is aimed at Mexico – another major electronics supplier. Although domestic production in the US has increased, partly due to tariffs, it is still limited to higher costs and tougher rules.

“Yes, Apple now creates some iPhones in India, and (Taiwanese chips) TSMC is engaged in diversification in Arizona,” says Mary Maria, a senior employee of the Peterson Institute in Washington.

“But China is still a mass part of the supply chain. Relations with new suppliers require time to develop, and they are expensive.”

Studies show that companies are moving to a large share of tariffs, making prices. Earlier this month, the Barry Board BoS BoS Best Best Buy said that “the vast majority of” new tariffs “are likely to be transferred to the consumer” because providers in the field have such small stocks.

In February, the Taiwanese firm Acer said the price of his laptops would probably rise by 10% based on 10% duties in China at a time, while the American HP group warned that its profits would be lower of the tariffs.

Ms. Gazorian says that this year may have to raise the prices, but worries that this may occur. ‘There is a price when the client is satisfied with the cost of the goods provided.

“The moment I move higher than I start to lose customers. High inflation squeezed Americans.”

During the first term Mr. Trump company, such as Apple, successfully provided release from the products and we can still see the incision.

Insiders also suggested Mr. Trump view tariffs as a negotiation tactic and can alleviate them if he wins concessions as he did when China agreed to purchase more US goods in the 2020 agreement.

Fears of the US Economic Slow can also make it change the course.

At the moment, the tension looks probably growing. China, Mexico and Canada have promised to avenge any responsibilities in the US, and this week, Mr. Trump threatened the double tariff on Canadian steel and aluminum in the last minute.

He plans to impose “mutual tariffs” to the rest of the world, and threatened to increase tariffs to 60% of Chinese goods while on the company’s way.

There is a risk. Moreover, countries can return with tariffs for imported American technology.

Ms. Gazaran says she is worried, but at least she is prepared this time. Like many other business owners in the US, it is a volumetric inventory before Mr. Trump entered the post and retains it in the east coast.

She hopes it will receive the company over the next year until it is able to “turn” again.

“It can mean search for a more economical way to produce a product or do something completely different. It is unpleasant that I have to focus on survival rather than the development of my business.”