Trump’s presidency could bring a major shift in global trade: Asia and U.S. companies prepare for a paradigm shift.
Donald Trump’s election as the 47th President of the United States initially sent shockwaves through the markets, despite Elon Musk having endorsed this outcome for months. Now that the dust is settling, American companies are seeing a renewed surge of interest, making NVIDIA once again the world’s most valuable company. However, for China, Trump’s return to power is realizing one of their biggest fears.
In recent weeks, with uncertainty over whether Kamala Harris or Donald Trump would take the White House, China began investing heavily in its tech sector, hoping to brace for potential fallout. Now, with Trump confirmed as the next president, he’s reiterated his plan to impose a 60% tariff on all imports from China. Unfortunately, this move will likely increase the costs—and prices—of many popular consumer products in the United States.
Gaming Consoles and Smartphones Face Steep Price Hikes
According to a study by the CTA, tariffs could drive up gaming laptop prices by nearly double. But they’re not alone; consoles could see a 40% increase, while smartphones may rise by up to 26%. Historically, China has countered tariffs with its own measures, but the two regions remain deeply interdependent on technology. Why? Around 30% of global manufacturing relies on China, and restructuring this system would require time and substantial investments.
Smaller tech companies, as highlighted by Ars Technica, would bear the brunt of these tariffs, facing rising operational costs, limited growth, and uncertainty in innovation capabilities. Experts agree that diplomacy is key to navigating relations with China and warn against fully severing ties. Nonetheless, both Asia and North America continue investing in local industries to achieve long-coveted tech independence.
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