Microsoft, HP and Dell are taking precautions against possible tariff hikes by President Trump
With the return of Donald Trump to the US presidency, US technology companies such as Microsoft, HP and Dell have started taking precautions against expected tariffs on products from countries such as Taiwan and China.
Here's What We Know
Microsoft is urging its suppliers to increase production, especially for cloud services, and move operations out of the countries affected by the taxes. HP and Dell are also asking their suppliers to ramp up production and are looking for ways to reduce their dependence on China. The moves come amid concerns about rising consumer electronics prices.
A study by the Consumer Technology Association (CTA) found that customs duties could significantly increase the prices of smartphones, laptops and gaming consoles. The CTA report also noted that the tariffs are likely to shift production to other countries rather than bring it back to the US. Companies are taking preventative measures to protect themselves from potential disruptions in global supply chains.
Source: shiftdelete
