President Donald Trump’s 10 percent tariff on goods imported from China has been in effect for nearly a week. Ahead of the tariff going into effect, I wrote that “Big Tech has been silent on Trump’s tariffs” — almost no one in the industry had a public reaction or said how they would respond. A week later, that hasn’t really changed.
Myself and my colleagues have contacted a wide range of tech companies multiple times since the tariffs on China (and the now-paused tariffs on Canada and Mexico) were announced at the beginning of the month. Here’s what we’ve heard back – or haven’t heard:
Just about every Big Tech company makes and ships products from China, so the tariff means higher costs to bring those products into the country. Those higher costs are often passed onto consumers, so if the tariff stays in effect, it seems likely that the companies will raise prices on their products or otherwise see their margins decline.
There are a handful of reasons why companies may be hesitant to comment. It might take time for the companies to feel the effects of the tariff and know how it might impact their businesses. The Trump administration is chaotic, so companies may be waiting to see if the policy changes or gets put on pause, as it already has for Canada and Mexico. The administration is also vindictive, so the companies may not want to draw the ire of the president by blaming the tariffs for hurting their business.
Automakers, on the other hand, have been more vocal.
Tesla hasn’t replied to a request for comment.
The tariffs have already led to some turmoil for shipments and deliveries. Trump briefly removed the de minimis exemption, which allowed packages valued at less than $800 to enter the US duty free. That led the USPS to briefly stop accepting parcels from China and shoppers seeing additional fees on shipments from other carriers. But on Friday, the Trump administration temporarily paused the removal of the exemption until the process could be made more orderly.
Trump also signed an order on Monday to impose 25 percent tariffs on steel and aluminum, NBC News reports.
Update, February 10th: Added Trump’s new tariffs on steel and aluminum.
