April 4 - President Trump's new tariff plan is shaking up the tech world, and Wedbush Securities isn't holding back on the potential fallout. They're calling it a “tariff economic Armageddon,” warning it could undo decades of progress in U.S. tech trade. According to analysts led by Dan Ives, the tariffs could push the U.S. tech industry back to the 1980s.
The proposed tariff rates, 50% on China and 32% on Taiwan, could send prices soaring. For instance, U.S.-made Apple Inc. (AAPL, Financial) iPhones could soon cost up to $3,500, and it's not just Apple: almost all electronics could see prices jump by 40% to 50%. On top of that, the AI revolution that's been driving so much excitement, led by Nvidia (NVDA, Financial), OpenAI, and Microsoft (MSFT, Financial), could hit a serious slowdown.
The tech supply chain, which has been all about keeping prices low and products coming in high volume, is now facing huge disruptions. Analysts are predicting that tech earnings could drop by at least 15%. They're urging immediate talks to try to prevent this from dragging on and hitting consumers hard. Without quick action, U.S. tech innovation could lose its competitive edge on the global stage.
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